The Following Information Pertains to Soho Company What Is the Current Ratio for Soho?
A) 1

The following information pertains to Soho Company. Assume that all statement of financial position amounts represent both average and ending balance figures. Assume that all sales were on credit. $\begin{array}{lr}\text { Assets }\\\text { Property, plant and equipment } & \$ 210,000 \\\text { Inventory } & 20,000 \\\text { Accounts receivable (net) } & 25,000 \\\text { Cash and short-term investments } & 40,000 \\\quad \text { Total Assets } & \$ 295,000\\\\\text { Equity and Liabilities }\\\text { Shareholders' equity\_ordinary } & \$ 150,000 \\\text { Non-current liabilities } & 85,000 \\\text { Current liabilities } & 60,000 \\\text { Total Equity and Liabilities } & \$ 295,000 \\\\\text { Income Statement }\\\text { Sales revenue } & \$ 85,000 \\\text { Cost of goods sold } & 45,000 \\\text { Gross margin } & 40,000 \\\text { Operating expenses } & 20,000 \\\quad \text { Net income } & \$ 20,000 \\\\\text { Number of ordinary shares } & 6,000 \\\text { Market price of ordinary shares } & \$ 20 \\\text { Dividends per share } & .90\end{array}$ What is the current ratio for Soho?

A) 1.42
B) .80
C) 1.16
D) .60