According to it's debt agreement, this company has a financial covenant to: maintain a current ratio of 1.2. (ASSUME ALL LIIABILITIES ARE CURRENT LIABILITIES) Select the best answer prsented.

A.

The ratio is 1.5 and the company is in compliance.

B.

The ratio is 3.0 and the company is not in compliance.

C.

The ratio is 3.0 and the company is in compliance.

D.

The ratio is 2.0 and the company is in compliance.

E.

No presented answer is correct, or not enough info is present

F.

The ratio is 1.5 and the company is not in compliance.

G.

The ratio is 2,0 and the company is not in compliance.

Simple Balance Sheet Assets Cash Accounts Receivable Total Assets 1000.00 500.00 $1500.00 Liabilities & Owner's Equity Liabilities 250.00 Bank Loan Accounts Payable Total Liabilities 750.00 $1000.00 Owner's Equity Acme Photo, Capital Total Owner's Equity 500.00 $500.00 Total Liabilities & Owner's Equity $1500.00