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BALANCE SHEET Cash $140.0 Accounts payable $800.0 Accts. receivable 880.0 Notes payable 600.0 Inventories 1,320.0 Accruals 400.0 Total current assets $2,340.0 Total current liabilities $1,800.0

BALANCE SHEET
Cash $140.0 Accounts payable $800.0
Accts. receivable 880.0 Notes payable 600.0
Inventories 1,320.0 Accruals 400.0
Total current assets $2,340.0 Total current liabilities $1,800.0
Long-term bonds 1,000.0
Total debt $2,800.0
Common stock 200.0
Retained earnings 1,000.0
Net plant & equip. 1,660.0 Total common equity $1,200.0
Total assets $4,000.0 Total liabilities & equity $4,000.0
INCOME STATEMENT
Net sales $6,000.0
Operating costs 5,599.8
Depreciation 100.2
EBIT $300.0
Less: Interest 96.0
EBT $204.0
Less: Taxes 81.6
Net income $122.4
OTHER DATA

Shares outstanding 60.00

Common dividends $42.8

Federal plus state income tax rate 40%

Year-end stock price $30.60

Use Scenario 1 to answer the question. What is the firm's current ratio?

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