Ayayai Equipment Co. closes its books regularly on December 31, but at the end of 2020 it held its cash book open so that a more favorable balance sheet could be prepared for credit purposes. Cash receipts and disbursements for the first 10 days of January were recorded as December transactions. The information is given below.

1.		January cash receipts recorded in the December cash book totaled $49,100, of which $38,000 represents cash sales, and $11,100 represents collections on account for which cash discounts of $384 were given.
2.		January cash disbursements recorded in the December check register liquidated accounts payable of $24,372 on which discounts of $275 were taken.
3.		The ledger has not been closed for 2020.
4.		The amount shown as inventory was determined by physical count on December 31, 2020.

The company uses the periodic method of inventory.

Prepare any entries you consider necessary to correct Ayayais accounts at December 31

then,

To what extent was Ayayai Equipment Co. able to show a more favorable balance sheet at December 31 by holding its cash book open? (Compute working capital and the current ratio.) Assume that the balance sheet that was prepared by the company showed the following amounts: (Round ratios to 2 decimal places, e.g. 4.56.)

		Dr.			Cr.
Cash		$41,340
Accounts receivable		39,800
Inventory		66,370
Accounts payable					$46,680
Other current liabilities					15,002

		Per Balance Sheet			After Adjustment
Working capital		$enter a dollar amount			$enter a dollar amount
Current ratio		enter current ratio rounded to 2 decimal places	to 1		enter current ratio rounded to 2 decimal places