The Financial Statements for Barrington Service Company Include the Following

Multiple Choice

The financial statements for Barrington Service Company include the following items: $$\begin{array} { | l | r | r | } \hline &{ 2019 } & { 2018 } \\\hline \text { Cash } & \$ 49,500 & \$ 50,000 \\\hline \text { Short-term Investments } & 29,000 & 19,000 \\\hline \text { Net Accounts Receivable } & 60,000 & 46,000 \\\hline \text { Merchandise Inventory } & 156,000 & 48,000 \\\hline \text { Total Assets } & 532,000 & 544,000 \\\hline \text { Accounts Payable } & 133,500 & 127,000 \\\hline \text { Salaries Payable } & 20,000 & 15,000 \\\hline \text { Long-term Note Payable } & 59,000 & 54,000 \\\hline\end{array}$$ Compute the current ratio for 2018.(Round answer to two decimal places.)

A) 1.15
B) 0.87
C) 3.83
D) 6.48