As of December 31, the Stanford company has the following information. Use this information to answer questions 1 to 3.

Cash$5,000

Accounts Receivable 15,000

Inventory 40,000

Prepaid Insurance 3000

Fixed Assets 100,000

Accounts Payable 15,000

Notes Payable in 5 Months 12,500

Salary Payable 25,000

Notes Payable in 5 years 35,000

Owner's Equity 98,000

2. What is the company's Current Ratio?

2.5

1.75

2.1

1.2