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Higgins Company began operations last year. You are a member of the management team investigating expansion ideas that will require borrowing funds from banks. At

Higgins Company began operations last year. You are a member of the management team investigating expansion ideas
that will require borrowing funds from banks. At the start of the current year, Higgins's T-account balances were as follows:
Assets :
The following transactions occured in current year:
a. Borrowed $2,300 from a local bank, signing a note due in three years.
b. Sold $1,100 of the investments for $1,100 cash.
c. Sold one-half of the property and equipment for $1,700 in cash.
d. Declared and paid $350 in cash dividends to stockholders.
Calculate the current ratio at December 31 of the current year. (Round your answer to 2 decimal places.)
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