Waec Model Questions Vol1 2020 Financial Accounting Question 46

The trial balance of ABC Ltd for the year ended 31 December 2025 shows the following balances (all figures in Naira): Cash 150,000; Trade Receivables 200,000; Opening Inventory 120,000; Equipment (cost) 300,000; Accumulated Depreciation (opening) 60,000; Trade Payables 180,000; Bank Loan (short‑term) 100,000; Capital 250,000; Sales 800,000; Purchases 500,000; Salaries Expense 120,000; Rent Expense 50,000; Interest Expense 20,000. Additional information: 1. Depreciation on equipment for the year is 10 % of its cost. 2. Closing inventory is 20 % lower than opening inventory. 3. Provision for doubtful debts at year‑end is 5 % of trade receivables. 4. No other adjustments are required. What is the current ratio (Current Assets ÷ Current Liabilities) of the company at year‑end? Express your answer to two decimal places.