Refer to exbit 4.1. What is the firms current ratio?

A) 1.36

B) 0.99

C) 1.23

D) 1.10

E) 1.50

L. chapter b Multiple Choice 04-115, Section b Multiple Choice 04-115, Problem b Multiple Choice 04-115 The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Assets Cash and securities Accounts receivable 2014 $2,500 11,500 Inventories Total current assets Net plant and equipment Total assets 16,000 $30,000 $20,000 $50,000 Accounts payable Accruals Notes payable $9,500 5,500 7000 $22,000 Total current liabalities Long-term bonds Total liabalities Common stock Retained earnings Total common equty Total Iiabilities and equity $15000 $37,000 2,000 11,000 $13,000 Net sales Operating costs except depreciation Depreciation Eamings bef interest and taxes (EBIT Levs interet 2014 $87.500 81,813 1531 s 4.150