Crane Corporation was formed five years ago through an initial public offering (IPO) of common shares. Daniel Brown, who owns 15% of the common shares, was one of the organizers of Crane and is its current president. The company has been successful, but it is currently experiencing a shortage of funds. On June 10, 2020, Daniel Brown approached the Hibernia Bank, asking for a 24-month extension on two $36,400 notes, which are due on June 30, 2020, and September 30, 2020. Another note for $5,100 is due on March 31, 2021, but he expects no difficulty in paying this note on its due date. Brown explained that Cranes cash flow problems are due primarily to the companys desire to finance a $281,500 plant expansion spent evenly over the next two fiscal years through internally generated funds. The plant expansion will be used in operations following the completion of the construction in 2023. The commercial loan officer of Hibernia Bank requested financial reports for the past two fiscal years. These reports are reproduced below.

CRANE CORPORATION Statement of Financial Position March 31
Assets		2020			2019
Cash		$17,690			$11,600
Notes receivable		145,210			123,200
Accounts receivable (net)		130,170			134,400
Inventories (at cost)		105,160			48,200
Plant and equipment (net of depreciation)		1,403,900			1,312,000
Total assets		$1,802,130			$1,629,400
Equity and Liabilities
Share capitalcommon (126,000 shares issued)		$1,260,000			$1,260,000
Retained earnings (note 1)		380,670			281,000
Accrued liabilities		8,830			5,810
Notes payable (current)		77,900			60,140
Accounts payable		74,730			22,450
Total equity and liabilities		$1,802,130			$1,629,400

Note 1: Cash dividends were paid at the rate of $1 per share in fiscal year 2019 and $2 per share in fiscal year 2020.

CRANE CORPORATION Income Statement For the Fiscal Years Ended March 31
		2020			2019
Sales		$2,973,600			$2,677,000
Cost of goods sold (note 2)		1,516,300			1,416,000
Gross margin		$1,457,300			$1,261,000
Operating expenses		777,500			761,500
Income before income tax		$679,800			$499,500
Income tax (30%)		203,940			149,850
Net income		$475,860			$349,650

Note 2: Depreciation charges on the plant and equipment of $91,000 and $93,275 for fiscal years ended March 31, 2019 and 2020, respectively, are included in cost of goods sold. Additional information:

		2020		2019
1. Cash flows from operating activities		$459,000		$350,000
2. Capital expenditures for the year		128,000		110,000

Compute the following items for Crane Corporation.

(a1)

Compute current ratio for fiscal years 2019 and 2020. (Round answers to 2 decimal places, e.g. 5.75:1.)

		2019			2020
Current ratio			to 1			to 1