P2-3 (Algo) Recording Transactions in T-Accounts, Preparing the Balance Sheet from a Trial Balance, and Evaluating the Current Ratio LO2-2, 2-4, 2-5 [The following information applies to the questions displayed below.] Jaguar Plastics Company has been operating for three years. At December 31 of last year, the accounting records reflected the following: Cash Accounts receivable Inventory Investments (short-term) Notes receivable (long-term) Equipment Factory building Operating lease right-of-use assets Intangible assets 30,000 $20,000 Accounts payable $18,000 3,800 Accrued liabilities payable 3,400 Notes payable (current) 2,800 7,200 Notes payable (noncurrent) 2,000 Long-term lease liabilities 41,000 Common stock 43,000 64,000 9,600 135,000 4,600 97,000 Additional paid-in capital Retained earnings 86,400 105,800 During the current year, the company had the following summarized activities: a. Purchased short-term investments for $8,400 cash. b. Lent $5,600 to a supplier, who signed a two-year note. c. Leased equipment that cost $18,000; paid $4,300 cash and signed a five-year right-of-use lease for the balance. d. Hired a new president at the end of the year. The contract was for $93,000 per year plus options to purchase company stock at a set price based on company performance. The new president begins her position on January 1 of next year. e. Issued an additional 1,100 shares of $0.50 par value common stock for $16,000 cash. f. Borrowed $11,000 cash from a local bank, payable in three months. g. Purchased a patent (an intangible asset) for $1,100 cash. h. Built an addition to the factory for $28,000; paid $7,800 in cash and signed a three-year note for the balance. i. Returned defective equipment to the manufacturer, receiving a cash refund of $1,200. P2-3 Part 6 Required: 6. Compute the current ratio for the current year. Note: Round your answer to 2 decimal places. Current ratio