Answer:
0.31; 0.27
Explanation:
Given that,
Total current assets = $867
Inventory = $22
Total current liabilities = $2,778
Current ratio:
= Current assets ÷ Current liabilities
= $867 ÷ $ 2,778
= 0.31
Acid test ratio:
= (Current assets - Inventory) ÷ Current liabilities
= ($867 - $122) ÷ $ 2,778
= $745 ÷ $2,778
= 0.27
Therefore, the current ratio and acid test ratio are 0.31 and 0.27, respectively.