Question: Power Corp. reported the following data for calendar 2020: Total assets.............................................. $625,000 Current assets.......................................... 325,000 Total liabilities........................................... 300,000 Long-term liabilities.................................. 145,000 Inventories, Dec 31/19............................. 110,000

Power Corp. reported the following data for calendar 2020:

Total assets..............................................$625,000
Current assets..........................................325,000
Total liabilities...........................................300,000
Long-term liabilities..................................145,000
Inventories, Dec 31/19.............................110,000
Inventories, Dec 31/20.............................100,000
Net sales..................................................1,550,000
Gross profit..............................................920,000
Net income..............................................205,000

To two decimals, Power Corp.’s current ratio for 2020 is

a. 2.08.

b. 0.92.

c. 2.10.

d. 1.08.

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