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A firm has the following balance sheet as December 31, 2020. What is its current ratio? Cash $20,000 Short Term Investments $25,000 Accounts Receivable $10,000

A firm has the following balance sheet as December 31, 2020. What is its current ratio?

Cash $20,000
Short Term Investments $25,000
Accounts Receivable $10,000
Inventory $50,000
Prepaid Expenses $10,000
Property, Plant, and Equipment $125,000
Total Assets $240,000
Accounts Payable $5,000
Deferred Revenue $5,000
Short Term Debt $10,000
Current Portion of Long Term Bonds Payable $25,000
Long Term Bonds Payable $65,000
Common Stock, Par $1,000
Common Stock, Paid in Capital $84,000
Retained Earnings $45,000
Total Liabilities and Equity $240,000

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