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

Exercise 5-21(Algo) Computing and analyzing the acid-test ratio LO A1
CamaroGTOTorinoCash$ 2,400$ 230$ 1,300Short-term investments00600Current receivables260510500Inventory2,1752,0203,050Prepaid expenses300600900Total current assets$ 5,135$ 3,360$ 6,350Current liabilities$ 2,220$ 1,320$ 3,550
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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