7. Partial information from Fabray Companys balance sheet is as follows:

Current Assets			Current Liabilities
Cash	$1,200,000		Notes Payable	$750,000
Marketable Securities	$3,750,000		Accounts Payable	$9,750,000
Accounts Receivable	$28,800,000		Accrued Expenses	$6,250,000
Inventories	$33,150,000		Income Taxes Payable	$250,000
Prepaid Expenses	$600,000		Total Current Liabilities	$17,000,000
Total Current Assets	$67,500,000

What is Fabrays current ratio?

0.25

3.0

1.8

3.97