Grouper Company provides you with the following balance sheet information as of December 31, 2017.

Current assets $11,500 Current liabilities $12,000 Long-term assets 26,500 Long-term liabilities 14,000 Total assets $38,000 Stockholders’ equity 12,000 Total liabilities and stockholders’ equity $38,000 In addition, Grouper reported net income for 2017 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 2017.

(b) Assume that at the end of 2017, 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 for Grouper for 2017.