Waec Model Questions Vol1 2020 Financial Accounting Question 10

The balance sheet of DEF Ltd as at 31 December shows the following (figures in Naira): Current assets - Cash 25,000; Trade receivables 55,000; Inventory 40,000; Pre‑payments 5,000. Non‑current assets - Equipment (cost 100,000; accumulated depreciation 20,000). Current liabilities - Trade payables 30,000; Short‑term loan 15,000. Non‑current liabilities - Long‑term loan 50,000. Capital (opening) 120,000; Drawings 10,000; Net profit for the year 20,000 (already added to capital). It was later discovered that equipment worth N80,000 (net book value) is to be sold within the next year and should be classified as a current asset, and that depreciation expense of N8,000 for the year was omitted from profit. After making these adjustments, what is the corrected current ratio (current assets ÷ current liabilities) expressed to two decimal places?