Information from Blain Company's balance sheet is as follows:
Current assets:
Cash .................................................... $ 1,200,000
Investment securities ................................... 3,750,000
Accounts receivable ..................................... 28,800,000
Inventories ............................................. 33,150,000
Prepaid expenses ........................................ 600,000
Total current assets .................................... $67,500,000
Current liabilities:
Notes payable ........................................... $ 750,000
Accounts payable ........................................ 9,750,000
Accrued expenses ........................................ 6,250,000
Income taxes payable .................................... 250,000
Payments due within one year on long-term debt .......... 1,750,000
Total current liabilities ............................. $18,750,000
What is Blain's quick (acid-test) ratio?
a. 0.26 to 1
b. 0.30 to 1
c. 1.80 to 1
d. 3.60 to 1