The accounts and balances that follow are from the general ledger of Lake Corporation.

Compute the (1) working capital and (2) current ratio. E-8

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Accounts Payable $16,600 Accounts Receivable 10,200 Cash 1,500 Current Portion of Long-Term Debt 10,000 Long-Term Investments 10,400 Marketable Securities 12,600 Merchandise Inventory 25,400 Notes Payable, 90 days 15,000 Notes Payable, 2 years 20,000 Notes Receivable, 90 days 26,000 Notes Receivable, 2 years 10,000 Prepaid Insurance 400 Property, Plant, and Equipment 60,000 Property Taxes Payable 1,250 Retained Earnings 28,300 Salaries Payable 850 Supplies Unearned Revenue 350 750