Calculate

Emerson Production CompanyEmerson Production Company's

net working capital, current ratio, and debt ratio at December 31. A year ago, net working capital was $6,390, the current ratio was1.80, and the debt ratio was 0.55.

Indicate whether the company's ability to pay its

debtboth current and total improved or deteriorated during the current year.

Emerson Production Company
Balance Sheet
December 31
Assets
Current Assets:
Cash			14,390
Prepaid rent			1,100
Total current assets			15,490
Plant Assets:
Equipment		$47,000
Less:	Accumulated depreciationEquipment	(4,400)	42,600
Total assets			$58,090

Liabilities
Current Liabilities:
Accounts payable			$4,600
Salary payable			400
Unearned service revenue			2,400
Income tax payable			1,100
Total current liabilities			8,500
Notes payable, long-term			15,000
Total liabilities			23,500
Shareholders' Equity
Retained earnings			25,690
Common stock			8,900
Total stockholders' equity			34,590
Total liabilities and stockholders' equity			$58,090

PLEASE SHOW WORK.

TOTAL NETWORKING CAPITAL IS ?

THE CURRENT RATIO IS ?