information are:
year 2006 2005cash 45 35
short-term investments 30 27
accounts receivable(net) 35 25
inventory 65 65
prepaid expenses 7 9
accounts payble 60 54
salary payable 14 15
income taxes payable 11 13
bonds payable (due2009) 80 80
net credit sales 270 235
cost of goods sold 165 141
the question is how can i compute the acid-test ratio for 2005 and 2006 ?

CaptainForest

Acid Test Ratio = Current Assets – Inventory – Prepaids / Current Liabilities.

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