A Company Reports the Following in Relation to Its Latest

Multiple Choice

A company reports the following in relation to its latest financial year:
$$\begin{array} { l r } \text { Current assets } & \$ 175 \\\text { Non-current assets } & 300 \\\text { Current liabilities } & 50 \\\text { Non-current liabilities } & 250\end{array}$$ Writing a cheque for $25 to pay off some long-term debentures payable means that the current ratio will be:

A) 7.0 times
B) 3.0 times
C) unchanged
D) 5.5 times