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The following information pertains to Metlock, Inc. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were

The following information pertains to Metlock, Inc. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.

Assets

Cash and short-term investments

$ 64000

Accounts receivable (net)

40000

Inventory

31000

Property, plant and equipment

213000

Total Assets

$348000

Liabilities and Stockholders Equity

Current liabilities

$ 30000

Long-term liabilities

73000

Stockholders equitycommon

245000

Total Liabilities and Stockholders Equity

$348000

Income Statement

Sales revenue

$95000

Cost of goods sold

53000

Gross profit

42000

Operating expenses

27000

Net income

$ 15000

Number of shares of common stock

8000

Market price of common stock

$22

Dividends per share on common stock

2.9

Cash provided by operations

$25000

What is the current ratio for this company?

A. 3.88

B. 3.68

C. 4.24

D. 4.50

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