Brief Exercise 221 Corsig Corporation had the following comparative current assets and current liabilities:
Dec 31, 2017
Dec 31, 2016
Current assets
Cash
$525,000
$400,000
Debt investments
$60,000
$30,000
Accounts receivable
$110,000
$35,000
Inventory
$30,000
$10,000
Prepaid expenses
$90,000
$25,000
Total current assets
$815,000
$500,000
Current liabilities
Accounts payable
$120,000
$40,000
Salaries and wages payable
$10,000
$17,000
Income tax payable
$70,000
$30,000
Total current liabilities
$200,000
$87,000
During 2017, net credit sales and cost of goods sold were $570,000 and $350,000, respectively. Net cash provided by operating activities for 2017 was $140,000.
Compute current ratio for 2017 (Round answer to decimal places; e.g. 2.25.)
Current ratio