22. The statement of financial position of Rosie Ltd. includes the following entries: inventory £25,000, trade receivables £12,000, cash £11,000 and current liabilities £25,000 (made up of trade payables £16,000, short-term borrowing £800 and £8,200 current tax payable). Calculate the current ratio.

A. 0.9: 1

B. 1:1

C. 0.4:1

D. 1.9:1

Answer : D