Goblin Company, has the following account balances at December 31, 2012.
Notes payable ($60,000 due after 12/31/13)...... $100,000
Unearned service revenue............. 70,000
Other long-term debt ($90,000 due in 2013)..... 250,000
Salaries and wages payable............. 32,000
Accounts payable................ 63,000
In addition, Goblin is involved in a lawsuit. Legal counsel feels it is probable Goblin will pay damages of $85,000 in 2013.
(a) Prepare the current liability section of Goblin’s 12/31/12 balance sheet.
(b) Goblin’s current assets are $570,000. Compute Goblin’s working capital and current ratio.