For Sutton Manufacturing, determine the current ratio and the acid-test ratio. Are these values acceptable? Why or why not?
Sutton Manufacturing Balance Sheet Data (thousands)

Assets Current assets Liabilities Current liabilities $870 Notes payable S500 Cash Accournts 450 Accounts payable 600 receivable Inventory Prepaid expenses 50 Taxes payable Other expenses Current portion 100 1200 Accrual:s 200 long-te debt Total current assets 2670 Tol crent 430 liabilities Long-term debt Officer debt 2000 Net fixed assets (subordinated) 3630 Laod Plant and 1200 Total liabilbties 2800 equipinent Common stock 670 Notes receivable 200 Casurplus 400 Retained cing 1200 3270 6900 Intangibles Otber assets 20 00 Total net worth Total assets 6900 Total liabilities and net Worth