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Canadian Bacon Inc. financial statements are presented in the table below.
Based on the information in the table, calculate the firm’s acid-test ratio (quick ratio).
Round the answers to two decimal places
Balance Sheet December 31, 2015
Cash and marketable securities$187,000Accounts payable $217,000
Accounts receivable$498,000Notes payable$51,500
Inventories$799,000Accrued expenses$58,300
Prepaid expenses$19,300Total current liabilities$326,800
Total current assets$1,503,300Long-term debt$215,400
Gross fixed assets$1,978,000Par value and paid-in-capital$128,000
Less: accumulated depreciation$478,000Retained Earnings$2,333,100
Net fixed assets $1,500,000Common Equity2,461,100
Total assets$3,003,300Total liabilities and owner’s equity$3,003,300
Income Statement, Year of 2015
Net sales (all credit)$5,386,600.00
Less: Cost of goods sold$3,716,754.00
Selling and administrative expenses$329,000.00
Depreciation expense$138,000.00
EBIT$1,202,846.00
Interest expense$39,600.00
Earnings before taxes$1,163,246.00
Income taxes$465,298.40
Net income $697,947.60
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