The top management of Marquis Manufacturing Services examines the following company accounting records at August 29, immediately before the end of the year, August 31:

1. Suppose Marquis's management wants to achieve a current ratio of 2 . How much in current liabilities should Marquis pay off within the next two days in order to achieve its goal?
2. If Marquis were to take out a bank loan of \(\$ 400,000\) and use the full proceeds to buy equipment on August 30, what effects would this have on the company's leverage and debt ratios at year-end?

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Total current assets... Non-current assets Total current liabilities............ Non-current liabilities. Shareholders' equity. $ 324,500 1,098.500 $1,423,000 $ 173,800 247.500 1,001,700 $1,423,000