Use the Information in the Adjusted Trial Balance Presented Below

Multiple Choice

Use the information in the adjusted trial balance presented below to calculate the current ratio for Taron Company: $$\begin{array} { | l | r | r | } \hline \text { Account Title } & { \text { Dr. } } & \text { Cr. } \\\hline \text { Cash } & \$ 23,000 & \\\hline \text { Accounts receivable } & 16,000 & \\\hline \text { Prepaid insurance } & 6,600 & \\\hline \text { Equipm ent } & 100,000 & \\\hline \text { Accumulated Depreciation -Equipment } & & \$ 50,000 \\\hline \text { Land } & 95,000 & \\\hline \text { Accounts payable } & & 17,000 \\\hline \text { Interest payable } & & 2,400 \\\hline \text { Unearned revenue } & & 5,000 \\\hline \text { Long-term notes payable } & & 30,000 \\\hline \text { Z. Taron, Capital } && 136,200 \\\hline \text { Totals } & \$ 240,600 & \$ 240,600 \\\hline\end{array}$$

A) .54.
B) 1.77.
C) 1.87.
D) 3.92.
E) 1.60.