The financial statements of Harbor Furniture Company include the following items

2017 2016

Cash $43,500 $42,000
Short-term Investments 27,000 12,500
Net Accounts Receivable 93,000 100,000
Merchandise Inventory 162,000 149,000
Total Assets 533,000 547,000
Total Current Liabilities 304,000 293,000
Long-term Note Payable 62,000 59,000

What is 2017 acid-test ratio? (Round your answer to two decimal places.)
A) 0.23
B) 1.07
C) 1.86
D) 0.54

D .D)
Acid-test ratio = (Cash + Short-term investments + Net current receivables) / Total current liabilities
Acid-test ratio = (Cash $43,500 + Short-term investments $27,000 + Net current receivables $93,000 ) / $304,000
Acid-test ratio = $163,500 / $304,000
Acid-test ratio = 0.54