Question: Exercise 4 - 2 0 ( Algo ) Computing and analyzing the acid - test ratio LO A 1 CamaroGTOTorinoCash$ 2 , 4 5 0

Exercise 4-20(Algo) Computing and analyzing the acid-test ratio LO A1
CamaroGTOTorinoCash$ 2,450$ 240$ 1,300Short-term investments00400Current receivables270520550Inventory2,2002,0403,100Prepaid expenses300700900Total current assets$ 5,220$ 3,500$ 6,250Current liabilities$ 2,240$ 1,330$ 3,600
Required:
Compute the acid-test ratio for each of the separate cases above.
Which company is in the best position to meet short-term obligations?

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