Can you explain the correct approach to solve this general accounting question?

Use the following information from ABC Company's balance sheet: Assets: Cash: $15,000 Short-term investments: $8,500 Accounts receivable: $12,400 + Inventory: $19,200 Property and equipment: $125,000 Accumulated depreciation: ($18,000) Total assets: $162,100 Liabilities and Stockholders' Equity: Accounts payable: $7,600 Notes payable (current): $3,900 * Accrued expenses: $2,500 + Long-term debt: $45,000 Common stock, $10 par: $50,000 Paid-in capital in excess of par: $23,100 Retained earnings: $30,000 + Total liabilities and stockholders' equity: $162,100 The company had 5,000 shares of common stock outstanding throughout the year and reported net income of $14,500. The current ratio is: A.39B.49C_ 3.5 D4. rn