Question: Exercise 4 - 2 1 ( Algo ) Computing and analyzing the acid - test ratio LO A 1 CamaroGTOTorinoCash$ 2 , 3 5 0

Exercise 4-21(Algo) Computing and analyzing the acid-test ratio LO A1
CamaroGTOTorinoCash$ 2,350$ 220$ 1,200Short-term investments00700Current receivables250500450Inventory2,1502,0003,000Prepaid expenses300600900Total current assets$ 5,050$ 3,320$ 6,250Current liabilities$ 2,200$ 1,310$ 3,500
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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