Freiman Corporation's most recent balance sheet and income statement appear below:

Balance Sheet
December 31, Year 2 and Year 1
(in thousands of dollars)
	Year 2	Year 1
Assets
Current assets:
Cash	$ 180	$ 140
Accounts receivable, net	270	290
Inventory	140	150
Prepaid expenses	50	50
Total current assets	640	630
Plant and equipment, net	800	800
Total assets	$ 1,440	$ 1,430
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 150	$ 170
Accrued liabilities	100	100
Notes payable, short term	70	80
Total current liabilities	320	350
Bonds payable	310	320
Total liabilities	630	670
Stockholders' equity:
Common stock, $2 par value	120	120
Additional paid-in capital	250	250
Retained earnings	440	390
Total stockholders' equity	810	760
Total liabilities & stockholders' equity	$ 1,440	$ 1,430

Income Statement
For the Year Ended December 31, Year 2
(in thousands of dollars)
Sales (all on account)	$ 1,710
Cost of goods sold	980
Gross margin	730
Selling and administrative expenses	409
Net operating income	321
Interest expense	55
Net income before taxes	266
Income taxes (30%)	80
Net income	$ 186

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

Multiple Choice

0.55

2.00

0.54

1.14