Below is some information from the financial records of Cleereen Co.:

Accounts payable

$ 18,000

Accounts receivable

20,000

Bank overdraft

5,500

Inventory

45,000

Property, plant, and equipment

150,000

Sales

236,500

(Working Capital Ratio) Cleereen”s working capital ratio is

  1. 0.85
  2. 2.77
  3. 3.92
  4. 9.15