Moth Company has the following account balances at December 31, 2010.

Notes payable ($60,000 due after 12/31/11) .. $100,000

Unearned revenue ............. 70,000

Other long-term debt ($90,000 due in 2011) ... 250,000

Salaries payable ............. 32,000

Utilities payable ............. 13,000

Accounts payable ............. 50,000

In addition, Moth is involved in a lawsuit. Legal counsel feels it is probable Moth will pay damages of $85,000 in 2011.

(a) Prepare the current liability section of Moth’s 12/31/10 balance sheet.

(b) Moth’s current assets are $570,000. Compute Moth’s working capital and current ratio.