Exercise 4-13 Computing and analyzing acid-test and current ratios L.O. A1

	Case A			Case B			Case C
Cash		$	800		$	510		$	3,200
Short-term investments			0			0			1,100
Current receivables			0			790			800
Inventory			2,000			1,600			1,900
Prepaid expenses			1,200			600			300
Total current assets		$	4,000		$	3,500		$	7,300
Current liabilities		$	2,200		$	1,100		$	3,650

Compute the current ratio and acid-test ratio for each of the above separate cases. (Round your answers to 2 decimal places.)

	Case A	Case B	Case C
Current ratio
Acid-test ratio

Which company case is in the best position to meet short-term obligations?

	Case A
	Case B
	Case C