Show Attempt History Current Attempt in Progress On May 1, 2020, Christina Fashions borrowed $109.000 at a bank by signing a four-year, 6% loan. The terms of the loan require equal principal payments of $27,250 and accrued interest at 6% due annually on April 30. The loan agreement requires the company to maintain a minimum current ratio of 2.0. The December 31, 2020 year-end statement of financial position, immediately prior to the reclassification of long-term debt, follows: $121,900 Current liabilities $53,000 Current assets Non-current assets 201,100 109,000 82,000 Loan payable Common shares Retained earnings Total liabilities and shareholders' equity 79,000 Total assets $323,000 $323,000 (a) Your answer is partially correct. Does Christina Fashions breach the bank's current ratio requirement after preparing the journal entries above? (Round answer to 2 decimal places, e.g. 1.25.) Current ratio Christina Fashions does not meet the bank's minimum current ratio. eTextbook and Media List of Accounts Save for Later Last saved 8 days ago Attempts: unlimited Submit Answer Saved work will be auto-submitted on the due date. Auto- Submission can take up to 10 minutes