Question:

You are the financial analyst at Warner Window Corp., where the following data has been supplied to you:

total current liabilities $100,000

sales 600,000

interest expense 5,000

cash 20,000

inventory200,000

accounts receivable 80,000

net profit margin 6.5%

The current ratio is:

5.0

4.0

3.0

9.0

10.9