Compute the current ratio and acid-test ratio for each of the above separate cases (A+)

Compute the current ratio and acid-test ratio for each of the above separate cases

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

Required:

Compute the current ratio and acid-test ratio for each of the above separate cases.
Which company case is in the best position to meet short-term obligations?

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