Lily Company had the following account totals as of December 31, 20X2.

Cost of goods sold

$150,000

Accounts receivable

100,000

Rent revenue

10,000

Accounts payable

25,000

Sales

200,000

Inventory

50,000

Bank Loan Payable*

20,000

Cash

18,000

Retained earnings (beginning of year, January 1, 20X2)

80,000

Prepaid insurance (6-month insurance policy)

15,000

Paid-in capital

38,000

Equipment

45,000

Unearned rent revenue (9-month contract)

5,000

*Of the $20,000 bank loan payable, $3,000 will be repaid in 20X3. What is Lily Company's

CURRENT RATIO?

5.74

6.14

4.06

5.90

5.55