Barnett Allen Interiors Incorporated is a leading manufacturer and retailer of home furnishings in the United States and abroad. The following is adapted from Barnett Allen’s June 30, 2019, trial balance. (The amounts shown represent millions of dollars.) Accounts Payable $ 120
Accounts Receivable 16
Cash 112
Common Stock 27
Equipment 305
Inventory 148
Notes Payable (long-term) 165
Notes Payable (short-term) 4
Prepaid Rent 29
Retained Earnings 333
Salaries and Wages Payable 26
Software 65
Assume that the following events occurred in the following quarter. Paid $45 cash for additional inventory. Issued additional shares of common stock for $35 in cash. Purchased equipment for $150; paid $70 in cash and signed a note to pay the remaining $80 in two years. Signed a short-term note to borrow $13 cash. Conducted negotiations to purchase a sawmill, which is expected to cost $34.
Required: 1-a. Calculate Barnett Allen’s current ratio at June 30, 2019, prior to the transactions listed above.