Medlen Company has the following account balances at December 31, 2014.
Notes payable ($60,000 due after 12/31/15) ....... $100,000
Unearned service revenue .............. 70,000
Other long-term debt ($90,000 due in 2015) ...... 250,000
Salaries and wages payable ............... 32,000
Accounts payable .................. 63,000
In addition, Medlen is involved in a lawsuit. Legal counsel feels it is probable Medlen will pay damages of $25,000 in 2015.
(a) Prepare the current liability section of Medlen’s December 31, 2014, balance sheet.
(b) Medlen’s current assets are $570,000. Compute Medlen’s working capital and current ratio.