Question: A company located in China has reported on its first quarter balance sheet CNY 100,000 in cash, CNY 200,000 in accounts receivables, and CNY 90,000

A company located in China has reported on its first quarter balance sheet CNY 100,000 in cash, CNY 200,000 in accounts receivables, and CNY 90,000 in current liabilities. The controller has forecasted that during the second quarter, there will be no change in the accounts receivables, but the cash balance will increase by 5% and the current liabilities will decrease by 10%. Based on the controller's forecast, what is the forecasted quick (acid-test) ratio for the second quarter?

A. 1.30

B.3.39

C.3.70

D. 3.77

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