On June 30, 2020, Kovacs Company borrowed $390,000 at a bank by signing a five- year, 10% loan. The terms of the loan require equal semi-annual principal payments plus interest beginning December 31, 2020. The loan agreement requires the company to maintain a current ratio of 2.5. The December 31, 2020, year-end statement of financial position, immediately prior to the bank loan repayment and the reclassification of long-term debt, follows: Current assets $184,500 Current liabilities $45,000 Non-current assets 519,500 Loan payable 390,000 Common shares 164,000 Retained earnings 105,000 Total liabilities and Total assets $704,000 shareholders' equity $704,000 (a) Does Kovacs Company comply with the current ratio requirement prior to recording the December 31 loan payment? (Round answer to 1 decimal place, e.g. 1.2.) Current ratio ( b )