Ironworks,Inc.has a cash balance of $80,000;short-term investments of $20,000;net receivables of $60,000;and inventory of $450,000.Current liabilities total $200,000.Red Line's current ratio is:

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The current ratio is calculated as (Cash + Short-term investments + Net receivables + Inventory) / Current liabilities = ($80,000 + $20,000 + $60,000 + $450,000) / $200,000 = $610,000 / $200,000 = 3.05 to 1.