The chief financial officer (CFO) of Sunland Corporation requested that the accounting department prepare a preliminary statement of financial position on December 20, 2021. She knows that certain debt agreements with its lenders require the company to maintain a current ratio of at least 2:1 and she wants to know how the company is doing. The preliminary statement of financial position follows: SUNLAND CORPORATION Statement of Financial Position December 20, 2021 Assets Liabilities Current assets Current liabilities Cash $20,000 Accounts payable $25,000 Accounts receivable 50,000 Salaries payable 25,000 $50,000 Prepaid insurance 5,000 Non-current liabilities Total current assets 75,000 Bank loan payable 70,000 Equipment 220,000 Total liabilities 120,000 Total assets $295,000 Shareholders' equity Common shares $90,000 Retained earnings 85,000 175,000 Total liabilities and shareholders' equity $295,000 (a) Calculate the current ratio based on the data in the preliminary statement of financial position (Round current ratio to 1 decimal place, e.g. 5.2) Current ratio :1 e Textbook and Media Save for Later Attempts: 0 of 15 used Submit