Grouper Company provides you with the following balance sheet information as of December 31, 2020.

In addition, Grouper reported net income for 2020 of $16,000, income tax expense of $3,200, and interest expense of $1,300.

a. Compute the current ratio and working capital for Grouper for 2020.

b. Assume that at the end of 2020, Grouper used $3,000 cash to pay off $3,000 of accounts payable. How would the current ratio and working capital have changed?

c. Compute the debt to assets ratio and the times interest earned ratio for Grouper for 2020.

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$11,500 Current liabilities Current assets Long-term assets 26,500 Long-term liabilities Total assets $12,000 14,000 $38,000 Stockholders' equity 12,000 Total liabilities and stockholders' equity $38,000