What is the firm current ratio

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Balance Sheets: 2014 2013 Cash and equivalents $70 $55 Accounts receivable 275 300 Inventories 375 350 Total current assets $720 $705 Net plant and equipment 2,000 1,490 Total assets $2,720 $2,195 Accounts payable $150 $85 Accurals 75 50 Notes payable 120 145 Total current liabilities $345 $280 Long-term debt 450 290 Common stock 1,225 1,225 Retained earnings 700 400 Total liabilities and equity $2,720 $2,195 Income Statements: 2014 2013 Sales $2,000 $1,500 Operating costs excluding depreciation 1,250 1,000 EBITDA $750 $500 Depreciation and amortization 100 75 EBIT $650 $425 Interest 62 45 EBT $588 $380 Taxes (40%) 235 152 Net income $353 $228 Dividends paid $53 $48 Addition to retained earnings $300 $180 Shares outstanding 100 100 Price $25.00 $22.50 WACC 10.00% What is the firm’s 2014 current ratio?

Reference no: EM131327807

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