Required information

P$2-3($Algo$)$ Recording Transactions in T$-$Accounts, Preparing the Balance Sheet from a Trial Balance, and

Evaluating the Current Ratio LO$2-2,2-4,2-5$

$[$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:

During the current year, the company had the following summarized activities:

a$.$ Purchased short$-$term investments for $$8,600$ cash.

b$.$ Lent $$5,700$ to a supplier, who signed a two$-$year note.

c$.$ Leased equipment that cost $$26,000$; paid $$5,600$ 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 $$92,000$ 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 $1,500$ shares of $$0\mathrm{.}50$ par value common stock for $$16,000$ cash.

f$.$ Borrowed $$18,000$ cash from a local bank, payable in three months.

g$.$ Purchased a patent $($an intangible asset$)$ for $$1,600$ cash.

h$.$ Built an addition to the factory for $$29,000$; paid $$7,100$ in cash and signed a three$-$year note for the balance.

i$.$ Returned defective equipment to the manufacturer, receiving a cash refund of $$2,300.$

Compute the current ratio for the current year.