Financial statements for March Company appear below:

March Company

Balance Sheet

December 31, 20X6 and 20X5 (dollars in thousands)

20X6 20X5 Current assets:

Cash and marketable securities $220 $190 Accounts receivable, net 160 150 Inventory 150 150 Prepaid expenses 50 40 Total current assets 580 530 Noncurrent assets:

Plant & equipment, net 1,560 1,560 Total assets $2,140 $2,090 Current liabilities:

Accounts payable $90 $100 Accrued liabilities 80 60 Notes payable, short term 230 230 Total current liabilities 400 390 Noncurrent liabilities:

Bonds payable 450 500 Total liabilities 850 890 Shareholders' equity:

Preferred shares, $10 par, 8% 120 120 Common shares, $5 par 180 180 Additional paid-in capital--common shares 220 220 Retained earnings 770 680 Total shareholders' equity 1,290 1,200 Total liabilities & shareholders' equity $2,140 $2,090

March Company

Income Statement

for the Year Ended December 31, 20X6 (dollars in thousands)

Sales (all on account) $1,610 Cost of goods sold 1,120 Gross margin 490 Operating expenses 190 Net operating income 300 Interest expense 50 Net income before taxes 250 Income taxes (30%) 75 Net income $175

March Company's current ratio at the end of 20 6 was closest to:

1.27 to 1.

1.45 to 1.

0.49 to 1.

0.47 to 1.

Question 2 options: