Using the following year-end information for calvin’s clothing, calculate the current ratio and acid-test ratio for the business: cash $ 60,230 short-term investments 16,000 accounts receivable 62,000 inventory 310,000 prepaid expenses 7,770 accounts payable 110,000 other current payables 32,500
a. 2.20 and 1b. 31 and 1.03c. 3.30 and 1.03d. 3.20 and 0.97e. 2.20 and 0.97

Garrett is an executive vice president at samm hardware. he researches a proposal by a larger company, maximum hardware, to combine the two companies. by analyzing past performance, conducting focus groups, and interviewing maximum employees, garrett concludes that maximum has poor profit margins, sells shoddy merchandise, and treats customers poorly. what actions should garrett and samm hardware take? a. turn down the acquisition offer and prepare to resist a hostile takeover. b. attempt a friendly merger and use managerial hubris to improve results at maximum. c. welcome the acquisition and use knowledge transfer to impart sam hardware's management practices. d. do nothing; the two companies cannot combine without samm hardware's explicit consent.