Lisa, Inc.

Statement of Financial Position

December 31, 2010

(in thousands)

                                                     2010        2009

Assets   

Current assets:      

   Cash                                                 $30      $25

   Trading securities                                     20        15

   Accounts receivable (net)                             45        30

   Inventories (at lower of cost of market)               60        50

   Prepaid items                                         15        20

          Total Current Assets                         $170      $140

Long-term assets:   

  Long-term investments:     

    Available-for-sale investments                      $25      $20

  Property, plant & equipment:     

    Land (at cost)                                       75        75

    Building (net)                                       80        90

    Equipment (net)                                     95      100

  Intangible assets:     

     Patents (net)                                       35       17

    Goodwill (net)                                       20       13

          Total Long-Term Assets                      $330     $315

          Total Assets                                 $500     $455

Liabilities and Equity    

Current liabilities:      

  Notes payable                                      $  23     $  12

  Accounts payable                                      47        28

  Accrued interest                                    $  15     $  15

          Total current liabilities                      $  85     $  55

Long-term liabilities:      

  Long-term Notes payable 10% due 12/31/2012    $  10     $  10

  Bonds payable 12% due 12/31/2015                   15        15

          Total long-term debt                        $  25     $  25

          Total liabilities                                $110    $  80

Shareholders' Equity      

  Preferred stock - 5% cumulative, $100 par,

 nonparticipating  authorized, issued and

outstanding, 1,000 shares                           $100       $100

Common stock - $10 par 20,000

shares authorized, 15,000      

shares issued and outstanding                       150          150

Additional paid-in capital - common                   75           75

  Retained earnings                                   65           50

          Total Equity                               $390         $375

          Total Liabilities & Equity                   $500         $455

Lisa Inc.'s acid test (quick) ratio at December 31, 2010 was

A. 1.8 : 1.0

B. .6 : 1.0

C. 1.1 : 1.0

D. 2.0 : 1.0