Reference no: EM132527410

Mayfield Corporation has provided the following financial data:

Balance Sheet

Assets

Current assets:

Cash$253,000

Accounts receivable, net 266,000

Inventory 214,000

Prepaid expenses 16,000

Total current assets 749,000

Plant and equipment, net 695,000

Total assets$1,444,000

Liabilities and Stockholders' Equity Current liabilities:

Accounts payable$192,000

Accrued liabilities 58,000

Notes payable, short term 51,000

Total current liabilities 301,000

Bonds payable 112,000

Total liabilities 413,000

Stockholders' equity:

Common stock, $4 par value 372,000

Additional paid-in capital 86,000

Retained earnings 573,000

Total stockholders' equity 1,031,000

Total liabilities & stockholders' equity$1,444,000

Question 1: The company's acid-test (quick) ratio is closest to:

Multiple Choice

Option 1: 1.83

Option 2: 1.78

Option 3: 2.49

Option 4: 1.72