As of December 31, Brian Company had the following account balances:

Required:
a. What was the current ratio?
b. Explain what the current ratio measures.

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Accounts payable Accounts receivable Bonds payable Cash Current portion of 5,000 Long-term investments $1,500 7,000 Marketable securities 8,000 Plant and equipment 2,000 Wages payable 3,500 8,500 1,500 bonds payable 2,000