#54

The following information pertains to Marigold Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.

Assets
Cash and short-term investments	$ 41000
Accounts receivable (net)	35000
Inventory	24000
Property, plant and equipment (net)	215000
Total Assets	$315000

Liabilities and Stockholders Equity
Current liabilities	$ 50000
Long-term liabilities	102000
Stockholders equitycommon	163000
Total Liabilities and Stockholders Equity	$315000

Income Statement
Sales (net)	$ 115000
Cost of goods sold	67000
Gross profit	48000
Operating expenses	32000
Net income	$ 16000

Number of shares of common stock	6000
Market price of common stock	$22
Dividends per share	0.60

What is the current ratio for Marigold?

1.52

0.50

1.30

2.00