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The income statement for the year ended December $31,20$X$6,$ for Total Inc. contains the following information:

Total Inc.

Income Statement

Year Ended December $31,20$X$6$

Sale $ $50,000$

Cost of goods sold $ $30,000$

Gross Profit $ $20,000$

Operating Expenses $ $15,000$

Profit from Operations $ $5,000$

Income Tax Expense $ $3,000$

Profit $ $2,000$

Total Inc. comparative balance sheet at December $31$

$20$X$620$X$5$

Cash $ $1,200$ $ $1,000$

Accounts Receivable $ $300$ $ $1,500$

Inventory $ $5,000$ $ $3,000$

Equipment $ $12,000$ $ $8,000$

Accumulated Depreciation $-$ equipment $ $(4,000)$ $ $(2,000)$

Total Assets $ $14,500$ $ $11,500$

Account Payable $ $1,000$ $ $3,500$

Long$-$term Notes Payable $ $2,000$ $ $-$

Common shares $ $10,000$ $ $8,000$

Retained Earnings $ $1,500$ $ $-$

Total Liabilities & Shareholders' Equity $ $14,500$ $ $11,500$

Additional Information:

Operating expenses include depreciation expense of $$2,500$

Accounts Payable related to the purchase of inventory

Equipment that cost $$2,000$ was sold for $$1,500$ cash

New equipment was purchased during the year for $$5,000$

Common shares were sold for $$2,000$ cash

Round answers to fit $2$ decimal places in all questions $($in $\%$ questions a $0\mathrm{.}12$ is presented as $12\%,$ so a $0\mathrm{.}124$ is rounded as $12\%$ and $0\mathrm{.}127$ is rounded as $13\%)$

The current ratio at December $20$X$5$ was:

Multiple Choice

Equal or below $4\mathrm{.}80$

Equal or above $19\mathrm{.}25$

Not enough data provided to calculate it

Between $4\mathrm{.}81$ and $9\mathrm{.}61$

Between $9\mathrm{.}62$ and $19\mathrm{.}24$

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