Ackno Question 5 of 6 < > -16 E Int info 12 The chief financial officer (CFO) of Sarasota Corporation requested that the accounting department prepare a preliminary balance sheet on December 30,2025, so that the CFO could get an idea of how the company stood. He knows that certain debt agreements with its creditors require the company to maintain a current ratio of at least 2:1. The preliminary balance sheet is as follows. Sarasota Corporation Balance Sheet December 30, 2025 Current assets Cash Accounts receivable Prepaid insurance Equipment (net) Total assets Assets $32,000 42.400 6.600 $81.000 216,000 $297,000 Liabilities and Stockholders' Equity Current liabilities Accounts payable $21,600 Salaries and wages payable 10,800 $ 32,400 Long-term liabilities Notes payable Total liabilities 86,400 118,800 Stockholders' equity Common stock Retained earnings Total liabilities and stockholders' equity 108,000 70,200 178,200 $297,000 inti (a) Calculate the current ratio and working capital based on the preliminary balance sheet. (Round current ratio to 1 decimol place, es. 0.7:1.) 2. Current ratio Working capital eTextbook and Media Save for Later Attempts: 0 of 2 used Submit Answer