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Mei-kwei Internationals common stock sold for $4.05 per share at the end of this year....

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Accounting

Mei-kwei Internationals common stock sold for $4.05 per share at the end of this year. The company paid preferred stock dividends totalling $4,400 and a common stock dividend of $0.75 per share this year. It also provided the following data excerpts from this years financial statements:
Ending
Balance Beginning Balance
Cash $ 35,000 $ 34,000
Accounts receivable $ 70,000 $ 55,000
Inventory $ 60,700 $ 70,000
Current assets $ 165,700 $ 159,000
Total assets $ 557,000 $ 586,800
Current liabilities $ 67,500 $ 55,500
Total liabilities $ 152,000 $ 136,800
Preferred stock $ 43,000 $ 43,000
Common stock, $1 par value $ 90,000 $ 90,000
Total stockholders equity $ 405,000 $ 450,000
Total liabilities and stockholders equity
$
557,000 $ 586,800
This Year
Sales (all on account) $ 825,000
Cost of goods sold $ 478,500
Gross margin $ 346,500
Net operating income $ 194,250
Interest expense $ 10,500
Net income $ 95,000
Required:
What is the acid-test ratio at the end of this year? (Round your answer to 2 decimal places.)

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