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Cummings Corporation has just completed its comparative statements for the year ended December 31, 20 x 4. For the corporation to decide on whether to add new product lines or to discontinue some products, some analysis of the corporation financial position has to be undertaken. The financial statement for 20 * 4 and 20x 3 are as follows: Cummings Corporation Income Statement Years ended 20X4 and 20X3 20X4 20X3 Sales revenue $450,000 $420.000 Cost of goods sold 250.000 230.000 Gross margin 200,000 190.000 Operating expenses 167.000 168.000 Pretax income 33,000 22.000 Income tax 10.000 6.000 Net income $23.000 $16.000 Cummings Corporation Balance Sheet December 31, 20X4 and 20X3 20X4 20X3 Cash $6,800 $3,900 Accounts receivable 42.000 28,000 Merchandise inventory 25,000 20.000 Prepaid expenses 200 100 Property, plant and equipment 130.000 120.000 Total assets $204.000 $172.000 Accounts payable $17,000 $18,000 Income taxes payable 1.000 2,000 Bonds payable (10% interest), long term 70,000 50,000 Common shares 100.000 100.000 Retained earnings 16.000 2000 Total liabilities and owners' equity $204 000 $172 000 Dividends on common shares totaled $9.000 in 20 4. Common shares had a par value of $5 each. All sales were on account. Calculate the current ratio for 20 x 3