Lia's Swim Shoppe has current liabilities of \( \$ 298,100 \); cash in the amount \( \$ 52,500 \); securities valued at \( \$ 95,400 \); and accounts receivable of \( \$ 158,200 \). Calculate the acid test ratio. (Round to the nearest hundredth.) Select one:

To calculate the acid test ratio, also known as the quick ratio, we use the formula: \[ \text{Acid Test Ratio} = \frac{\text{Cash} + \text{Securities} + \text{Accounts Receivable}}{\text{Current Liabilities}} \] Plugging in the numbers from Lia's Swim Shoppe: \[ \text{Acid Test Ratio} = \frac{52,500 + 95,400 + 158,200}{298,100} = \frac{306,100}{298,100} \approx 1.03 \] So the acid test ratio, rounded to the nearest hundredth, is **1.03**.