The Sports Authority, Inc., is a private full-line sporting goods retailer. Assume one of the Sports

Authority stores reported current assets of $88,000 and its current ratio was 1.75, and then completed the following transactions:

(1) Paid $6,000 on accounts payable,

(2) Purchased a delivery truck for $10,000 cash,

(3) Wrote off a bad account receivable for $2,000, and

(4) Paid previously declared dividends in the amount of $25,000.

Required:

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