The December 31,Year 1,balance Sheet of Rowan Company Shows Current

The December 31,Year 1,balance sheet of Rowan Company shows current assets of $32,000 and current liabilities of $20,000.On January 1,Year 2,the company recorded the following entries:

After the two journal entries were recorded,what is the company's current ratio?

A) 2 to 1
B) 1.6 to 1
C) 2.4 to 1
D) 2.1 to 1