Lazy O Corporation Selected Financial Data

Current assets $85,000

Current liabilities 70,000

Accounts receivable 35,000

Inventories 40,000

Accounts payable 25,000

Net sales 425,000

Cost of goods sold 258,000

Lazy O's current ratio is:

0.8 to 1

0.1 to 1

1.2 to 1

2.1 to 1