Cauce Corporation is preparing its year-end balance sheet. The company records show the following selected amounts at the end of the year: Total assets Total noncurrent assets $530,000 362,000 Liabilities: Notes payable (8%, due in 5 years) 15,000 Accounts payable 56,000 Income taxes payable 14,000 Liability for withholding taxes 3,000 Rent revenue collected in advance 7,000 Bonds payable (due in 15 years) 90,000 Wages payable 7,000 Property taxes payable 3,000 Note payable (10%, due in 6 months) 12,000 Interest payable 400 Common stock 100,000 Required: 1. Identify current liabilities and compute working capital. Why is working capital important to management? 2. Would your computation be different if the company reported $250,000 worth of contingent liabilities in the notes to its financial statements? Explain.