Testco had revenue = $1,000,000 cost of goods sold = $600,000 paid interest of $100,000 and paid $150,000 of tax. They have cash = $300,000 accounts receivable = $120,000 inventory = $80,000 net fixed assets = $2,500,000 accounts payable = $200,000 long-term debt = $800,000 and equity = $2,000,000.

The Current Ratio is: 2.5

2.1

1.7

.42