Use year-end data to calculate the Current Ratio for 2019 for the Castillo Products Company. Enter the 2019 Current Ratio in the box below. Round your response to two decimal places.

The Castillo Products Company was started in 2017. The company manufactures components for personal decision assistant (PDA) products and for other hand-held electronic products. A difficult operating year 2018 was followed by a profitable 2019. However, the founders (Cindy and Rob Castillo) are still concerned about the ventures liquidity position and the amount of cash being used to operate the firm. Following are income statements and balance sheets for the Castillo Products Company for 2018 and 2019.

CASTILLO PRODUCTS COMPANY

Income Statement 2018 2019

Net Sales $900,000 $1,500,000

Cost of Goods Sold 540,000 900,000

Gross Profit 360,000 600,000

Marketing 90,000 150,000

General & Administrative 250,000 250,000

Depreciation 40,000 40,000

EBIT -20,000 160,000

Interest 45,000 60,000

Earnings Before Taxes -65,000 100,000

Income Taxes 0 25,000

Net Income (Loss) -$65,000 $75,000

Balance Sheet 2018 2019

Cash $50,000 $20,000

Accounts Receivables 200,000 280,000

Inventories 400,000 500,000

Total Current Assets 650,000 800,000

Gross Fixed Assets 450,000 540,000

Accum. Depreciation -100,000 -140,000

Net Fixed Assets 350,000 400,000

Total Assets $1,000,000 $1,200,000

Accounts Payable $130,000 $160,000

Accruals 50,000 70,000

Bank Loan 90,000 100,000

Total Current Liabilities 270,000 330,000

Long-Term Debt 300,000 400,000

Common Stock ($.05 par) 150,000 150,000

Additional Paid-in-Capital 200,000 200,000

Retained Earnings 80,000 120,000

Total Liab. & Equity $1,000,000 $1,200,000