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You have been given responsibility for overseeing a bank s small business loans division. The bank has included loan covenants requiring a minimum current ratio

You have been given responsibility for overseeing a banks small business loans division. The bank has included loan covenants requiring a minimum current ratio of 1.60 in all small business loans. When you ask which inventory costing method the covenant assumes, the previous loans manager gives you a blank look. To explain to him that a companys inventory costing method is important, you present the following balance sheet information.
Current assets other than inventory $ 33
Inventory (a )
Other (noncurrent) assets 149
Total assets $ (b )
Current liabilities $ 52
Other (noncurrent) liabilities 67
Stockholders equity (d )
Total liabilities and stockholders equity $ (c )
You ask the former loans manager to find amounts for (a),(b),(c), and (d) assuming the company began the year with 4 units of inventory at a unit cost of $13, then purchased 7 units at a cost of $14 each, and finally purchased 5 units at a cost of $18 each. A year-end inventory count determined that 3 units are on hand.
Determine the current ratios using (i) FIFO, (ii) Weighted Average, and (iii) LIFO. (Round your answers to 2 decimal places.)

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