One measure of a company’s ability to pay debts is its working capital. 

Working Capital  Current Assets  Current Liabilities Current assets are cash and assets that will be converted to cash within the next accounting period. Current liabilities are debts that must be paid within the next accounting period. INSTRUCTIONS Refer to Roadrunner’s balance sheet on page 233. If Maria Sanchez had made a $1,000 withdrawal, how would each of the following change?

1. Current assets

2. Current liabilities

3. Working capital