Dumont Corporation is preparing its 2017 statement of financial position. The company records show the following related amounts at the end of the fiscal year, December 31, 2017:

Required

1. Compute (a) the amount of working capital and (b) the quick ratio (show computations). Why is working capital important to management? How do financial analysts use the quick ratio?2. Would your computations be different if the company reported $250,000 worth of contingent liabilities in the notes to its financial statements? Explain.

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Liability for withholding taxes Deferred rent revenue Bonds payable (due in 15 years) Wages payable Property taxes payable Note payable (6%; due in 6 months) Interest payable Shareholders' equity $ 25,000 $ 6,000 Cash Short-term investments Trade receivables Inventories Prepayments Non-current assets Notes payable (8%, due Trade payables Income taxes payable 14,000 54,000 147,000 180,000 110,000 14,000 2,000 6,000 24,000 296,200 in 5 years) 30,000 3,200 119,000 200,000 28,000