Question: Exercise 4 - 2 1 ( Algo ) Computing and analyzing the acid - test ratio LO A 1 CamaroGTOTorinoCash$ 2 , 7 5 0

Exercise 4-21(Algo) Computing and analyzing the acid-test ratio LO A1
CamaroGTOTorinoCash$ 2,750$ 300$ 1,400Short-term investments00700Current receivables330580400Inventory2,3502,1603,400Prepaid expenses400700900Total current assets$ 5,830$ 3,740$ 6,800Current liabilities$ 2,360$ 1,390$ 3,900
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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