The December 31, Year 1, balance sheet of Rowan Company shows current assets of $32,000 and current liabilities of $20,000. On January 1, Year 2, the company recorded the following entries:Cash10,000? Common stock?10,000Cash6,000? Accounts Receivable?6,000After the two journal entries were recorded, what is the company's current ratio?
A. 1.6 to 1
B. 2.1 to 1
C. 2.4 to 1
D. 2 to 1
Answer: B
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