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: a. \( 1.80: 1 \) b. \( .85: 1 \) c. \( .97: 1 \) d. \( 1.03: 1 \)

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 values: \[ \text{Acid Test Ratio} = \frac{52,500 + 95,400 + 158,200}{298,100} = \frac{306,100}{298,100} \approx 1.03 \] Rounded to the nearest hundredth, the acid test ratio is approximately \( 1.03: 1 \). So, the correct answer is: d. \( 1.03: 1 \)