Question $18(2$ points$)$

The current ratio is determined by dividing current liabilities into current assets. A

company had $$375,000$ in current assets and $$125,000$ in current liabilities. What

would the company's current ratio be if they decide to pay $$25,000$ on accounts

payable?

$3\mathrm{.}75$

$3\mathrm{.}50$

$3\mathrm{.}00$

$2\mathrm{.}80$