Question: 2. URL two (5 points): (a) Compute the acid test or quick ratio, which you compute by dividing the total current assets (minus prepaid insurance

2. URL two (5 points): (a) Compute the acid test or quick ratio, which you compute by dividing the total current assets (minus prepaid insurance & all the inventory accounts) by the total current liabilities. Some corporations do not show prepaid insurance on their balance sheet. (Because of the materiality concept, they record it as an expense rather than a current asset). If any of the five listed corporations do this, then ignore it in your calculation of the ratio. Please show your work. If you just show the answer, you will nowreceive any points. (b) Then rank your five companies according to current position or solvency

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