16) Calculate the working capital amount given the following data: Be sure to properly label your answer. Show all work.

Cash $10,000

A/R 20,000

Inventory 10,000

PPE (LTA) 50,000

Notes Payable (CL) 10,000

Mortgage Payable (LTL) 40,000

Retained Earnings 40,000

Rent expense 1,000

Car expense 500

Shipping expense 100

* LTL = long term liability, CL = current liability, LTA= Long term asset

17) Calculate the current ratio using the data in problem 16. Be sure to properly label your answer. Show all your work.