Post Utme Greenfield University 2017 Accounting Question 31

A company's financial statements for the year ended 31st December 2022, are presented below: Balance Sheet: Assets: Cash and Bank Balances: ₦1,500,000 Accounts Receivable: ₦2,000,000 Inventory: ₦3,000,000 Total Assets: ₦6,500,000 Liabilities: Accounts Payable: ₦1,000,000 Long-term Debt: ₦2,000,000 Total Liabilities: ₦3,000,000 Equity: Common Stock: ₦2,000,000 Retained Earnings: ₦1,500,000 Total Equity: ₦3,500,000 Income Statement: Revenue: ₦10,000,000 Cost of Goods Sold: ₦6,000,000 Gross Profit: ₦4,000,000 Operating Expenses: ₦2,000,000 Net Income: ₦2,000,000 What is the company's current ratio?