Warm Winters Linen, Inc. had current liabilities of $500,000; cash of $300,000; accounts receivable of $150,000; and ending inventory of $250,000. Compute the acid test ratio. (Round answer to two decimal places.)

Acid Test Ratio

A stringent indicator of a company's liquidity, measuring its ability to meet short-term obligations with its most liquid assets.

Current Liabilities

financial obligations that a company owes and is expected to pay within the next year or within its normal operating cycle if longer.