The following information was extracted from the accounting records of Alaska Medical Supplies (there are no other current assets or liabilities).

• Cash, Dec. 31
  • 20X5: $125,000
  • 20X4: $110,000
• Accounts receivable, Dec. 31
  • 20X5: $180,000
  • 20X4: $140,000
• Inventory, Dec. 31
  • 20X5: $70,000
  • 20X4: $50,000
• Accounts payable, Dec. 31
  • 20X5: $115,000
  • 20X4: $108,000

Compute the current ratio for 20X5. Alaska Medical Supplies rounds all calculations to two decimal places.

Group of answer choices

1.57

2.65

2.78

3.26