On May 1, 2024, Carol Fashions borrowed $116,000 at a bank by signing a four-year, 6% loan. The terms of the loan require equal principal payments of $29,000 and accrued interest at 6% due annually on April 30. The loan agreement requires the company to maintain a minimum current ratio of 2.0. The December 31, 2024, year-end statement of financial position, immediately prior to the reclassification of long-term debt, follows: Current assets $149,640 Current liabilities $58,000 Non-current assets 198.360 Loan payable 116,000 Common shares 87,000 Retained earnings 87,000 Total assets $348,000 Total liabilities and shareholders' equity $348,000 (a) Your answer is correct. Does Carol Fashions comply with the bank's current ratio requirement prior to recording the accrued interest and reclassification of the current portion of the long-term loan? (Round answer to 2 decimal places, e.g. 1.20.) Current ratio 2.58 Carol Fashions meets the bank's minimum current ratio.