Assume that a company has a current ratio of 1.5:1. This would imply:

a. there is sufficient net income to pay Accounts Payable

b. there is $1.50 of Cash for every $1 of Accounts Payable

c. there is $1.50 of Current Assets for every $1 of Current Liabilities

d. there is $1.50 of Cash for every $1 of Total Debt

e. there is $1.50 of Cash for every $1 of Retained Earnings