Question 1 of 10
Procurement and Contracting Requirements
Ridgeline Builders, Inc. — Balance sheet, December 31| Account | Amount |
|---|
| Current assets | |
| Cash | $85,000 |
| Contract receivables (including retainage) | $240,000 |
| Costs and estimated earnings in excess of billings | $35,000 |
| Materials inventory | $40,000 |
| Property and equipment, net | $350,000 |
| Total assets | $750,000 |
| Current liabilities | |
| Accounts payable | $180,000 |
| Billings in excess of costs and estimated earnings | $45,000 |
| Current portion of long-term debt | $25,000 |
| Accrued payroll and taxes | $50,000 |
| Long-term debt, less current portion | $150,000 |
| Total liabilities | $450,000 |
| Owners' equity | $300,000 |
| Total liabilities and owners' equity | $750,000 |
Use the balance sheet shown. What is Ridgeline Builders' current ratio?