Purchasers – #44,880
Sales – #85,850
Trade creditors – #12,250
Trade debtors – #24,000
Accrued expenses – # 350
Prepaid expenses – # 700
Stock 1/1/2006 – #25,120
Stock 31/12/2006 – #27,840
Calculate the acid test ration
A 1:94:1
B 1:96:1
C 1:1:94
D 1:1:96
Answer is B
