Use the following to answer the given question
BALANCE SHEET:
(begin{array}{c|c} & N & & N \ hline text{Ordinary share capital} & 100,000 & text{Plant and Machinery} & 60,000 \ text{6% preference share capital} & 60,000 & Furniture & 50,000 \ Reserve & 20,000 & text{Motor van} & 68,000 \ & 180,000 & Stock & 14,000 \ text{10% Debentures} & 40,000 & Debtors & 36,000 \ Creditors & 25,000 & Prepyments & 1,800 \ text{Accrued Rent} & 3,000 & bank & 18,200 \ Total & N248,000 & & N248,000 end{array})
What is the current ratio?
BALANCE SHEET:
(begin{array}{c|c} & N & & N \ hline text{Ordinary share capital} & 100,000 & text{Plant and Machinery} & 60,000 \ text{6% preference share capital} & 60,000 & Furniture & 50,000 \ Reserve & 20,000 & text{Motor van} & 68,000 \ & 180,000 & Stock & 14,000 \ text{10% Debentures} & 40,000 & Debtors & 36,000 \ Creditors & 25,000 & Prepyments & 1,800 \ text{Accrued Rent} & 3,000 & bank & 18,200 \ Total & N248,000 & & N248,000 end{array})
What is the current ratio?
-
A.
1 : 1 -
B.
1 : 2 -
C.
3 : 1 -
D.
5 : 2 -
E.
6.8 : 7