Pritchett Co. reported the following year-end data: cash of $15,000; short-term investments of $5,000; accounts receivable (current)

Question:

Pritchett Co. reported the following year-end data: cash of $15,000; short-term investments of $5,000; accounts receivable (current) of $8,000; inventory of $20,000; prepaid (current) assets of $6,000; and total current liabilities of $20,000. Compute the

(a) Current ratio

(b) Acid-test ratio.

Round to one decimal.