Refer to the balance sheet above. Luther's current ratio for 2006 is closest to ________

Question

Luther Corporation
Consolidated Balance Sheet
December 31, 2006 and 2005 (in $ millions)
Assets 2006 2005 Liabilities and Stockholders' Equity 2006 2005
Current Assets Current Liabilities
Cash 53.6 58.5 Accounts payable 89.2 73.5
Accounts receivable 55.8 39.6 Notes payable / short-term debt 10.3 9.6
Inventories 45.5 42.9 Current maturities of long-term debt 38.6 36.9
Other current assets 5.4 3.0 Other current liabilities 6.0 12.0
Total current assets 160.3 144.0 Total current liabilities 144.1 132.0

Long-Term Assets Long-Term Liabilities
Land 66.2 62.1 Long-term debt 228.7 168.9
Buildings 107.7 91.5 Capital lease obligations
Equipment 120.6 99.6
Less accumulated
depreciation (57.1) (52.5) Deferred taxes 22.8 22.2
Net property, plant, and equipment 237.4 200.7 Other long-term liabilities --- ---
Goodwill 60.0 -- Total long-term liabilities 251.5 191.1
Other long-term assets 63.0 42.0 Total liabilities 395.6 323.1
Total long-term assets 360.4 242.7 Stockholders' Equity 125.1 63.6

Total Assets 520.7 386.7 Total liabilities and Stockholders' Equity 520.7 386.7

A) 1.67
B) 2.22
C) 0.56
D) 1.11

Answer 1

Answer: D