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Excerpts from Colter Corporation's most recent balance sheet appear below: Year 2 Year 1 Current assets: Cash $ 103 $ 133 Accounts receivable, net 126

Excerpts from Colter Corporation's most recent balance sheet appear below:

Year 2 Year 1
Current assets:
Cash $ 103 $ 133
Accounts receivable, net 126 136
Inventory 209 199
Prepaid expenses 53 53
Total current assets 491 521
Total current liabilities $ 372 $ 355

Sales on account in Year 2 amounted to $1,535 and the cost of goods sold was $915.

The current ratio at the end of Year 2 is closest to:

Multiple Choice

  • 0.58

  • 0.64

  • 1.32

  • 1.27

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