Information for Ayayai Corp. is given below:

Ayayai Corp.

Balance Sheet

December $31,2026$

Assets

Cash

Accounts receivable $($net$)$

Inventories

Plant and equipment, net of depreciation

Patents

Other intangible assets

Total Assets

$$306000$

$1955000$

$2435000$

$1980000$

$259000$

$73100$

$$7008100$

Equities

Accounts payable

Income taxes payable

Miscellaneous accrued payables

Bonds payable $(8\%,$ due $2028)$

Preferred stock $($$$100$ par, $6\%$ cumulative nonparticipating$)$

Common stock $($no par, $60,000$ shares authorized, issued and outstanding$)$

Retained earnings

Treasury stock$-1,500$ shares of preferred

Total Equities

$$632000$

$193000$

$222000$

$1872000$

$754000$

$1128000$

$2428100$

$(221000)$

$$7008100$

Ayayai Corp.

Income Statement

Year Ended December $31,2026$

Net sales

$$9200000$

Cost of goods sold

$5900000$

Gross profit

$3300000$

Operating expenses $($including bond interest expense$)$

$1500000$

Income before income taxes

$1800000$

Income tax

$460000$

Net income

$$1340000$

Additional information: There are no preferred dividends in arrears, the balances in the Accounts Receivable and Inventory accounts are unchanged from January $1,2026,$ and there were no changes in the Bonds Payable, Preferred Stock, or Common Stock accounts during $2026.$ Assume that preferred dividends for the current year have not been declared.

At December $31,2026,$ the current ratio would be computed as follows:

$$6964000-$: $$825000.$

$$4696000-$: $$825000.$

$$2261000-$: $$632000.$

$$4696000-$: $$1047000.$