Acid-test ratio

The following partial balance sheet ($ in thousands) for
Paisano Seafood Inc. is shown below:

Current Assets

Cash – $60

Accounts receivable (net) – 170

Notes receivable – 50

Inventories – 200

Prepaid expenses – 25

Total current assets – 505

Plant assets (net) – 255

Total assets $760

Current Liabilities

Accounts payable – $240

Other liabilities – 80

Total current liabilities – 320

Long term liabilities – 110

Total liabilities – 430

Shareholders’ equity

Capital Stock – 150

Retained Earnings – 180

Total shareholders’ equity – 330

Total liabilities and equity – 760

What would the acid-test ratio be?

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