A company has current assets that total $500,000, a current ratio of 2.00, and uses the perpetual inventory method. Assume that the following transactions are then completed:

(1) Sold $12,000 in merchandise on short-term credit for $15,000,

(2) Declared but did not pay dividends of $50,000,

(3) Paid prepaid rent in the amount of $12,000,

(4) Paid previously declared dividends in the amount of $50,000,

(5) Collected an account receivable in the amount of $12,000, and

(6) Reclassified $40,000 of long-term debt as a current liability.

Required:

Compute the updated current ratio, rounded to two decimal places, after each transaction.