1) The Norris & Johnstone Company has $20,000 in supplies, $100,000 in stock, $111,000 in Retained Earnings, $30,000 accts payable, $240,000 in cash, $45,000 in long term notes payable, $92,000 in equipment, and $20,000 in accumulated depreciation.

a) What is the Norris & Johnstone Company's Current Ratio?

b) Assuming that the net income the year after was $85,000 what is the retained earnings for that year?