The following items are reported on a company's balance sheet:
|
Cash
|
$200,000
|
|
Temporary investments
|
100,000
|
|
Accounts receivable (net)
|
60,000
|
|
Inventory
|
100,000
|
|
Accounts payable
|
200,000
|
Determine (a) the current ratio and (b) the quick ratio. Round to one decimal place.