Use the following data to calculate the current ratio.
Eddy Auto Supplies, Balance Sheet, December 31, 2014
Cash $ 84,000 Accounts payable $ 110,000
Accounts receivable 80,000 Salaries and wages payable 20,000
Inventory 140,000 Mortgage payable 180,000
Prepaid insurance 60,000 Total liabilities $310,000
Stock investments 170,000
Land 190,000
Buildings $226,000 Common stock $240,000
Less: Accumulated depreciation (40,000) 186,000 Retained earnings 500,000
Trademarks 140,000 Total stockholders' equity $740,000
Total assets $1,050,000 Total liabilities and stockholders' equity $1,050,000
a. 2.34 : 1
b. 2.80 : 1
c. 3.31 : 1
d. 1.26 : 1