Using the Following Balance Sheet and Income Statement Data, What

Multiple Choice

Using the following balance sheet and income statement data, what is the current ratio? $\begin{array}{lrlr}\text { Current assets } & \$ 16,000 & \text { Net income } & \$ 21,000 \\\text { Current liabilities } & 8,000 & \text { Stockholders' equity } & 39,000 \\\text { Average assets } & 80,000 & \text { Total liabilities } & 21,000\\\text { Total assets } 60,000\end{array}$ Average common shares outstanding was 10,000.

A) 2.0 : 1
B) 2.6 : 1
C) 0.5 : 1
D) 2.9 : 1