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The following is a summary of information presented on the financial statements of The Cake Company on December 31, 2007. What would a horizontal analysis report with respect to current assets? Horizontal analysis would report inventory turnover as 8 times. Horizontal analysis would report a 30% increase in current assets. Horizontal analysis would report a current ratio of .87 . Horizontal analysis would report current assets as 33.33% of total assets. Bevington Studio reported the following income statement and balance sheet amounts on December 31, 2007. Inventory and prepaid expenses account for $20,000 of the 2007 current assets. Average inventory for 2007 is $15,000. Average net accounts receivable for 2007 is $30,000. Average one-day sales are $3,150. There are 7,000 shares of common stock outstanding. Total dividends paid during 2007 were $140,000. The market price per share of common stock is $21. What is the company's current ratio for 2007 ? 0.42 2.75 2.40 0.36