Current Liabilities and Ratios

Several accounts that appeared on Atunlu's 2017 balance sheet are as follows:

Accounts Payable	$81,000		Equipment	$950,000
Marketable Securities	40,000		Taxes Payable	15,000
Accounts Receivable	115,400		Retained Earnings	250,000
Notes Payable, 12%, due in 60 days	20,000		Inventory	165,000
Capital Stock	1,150,000		Allowance for Doubtful Accounts	20,000
Salaries Payable	10,000		Land	600,000
Cash	65,000

Required:

1. Prepare the Current Liabilities section of Atunlu's 2017 balance sheet.

Atunlu
Partial Balance Sheet
As Of December 31, 2017
Current liabilities:?
Accounts payable ?	$
?
?
?
Total current liabilities	$

2. Compute Atunlu's working capital.

$

3. Compute Atunlu's current ratio. Round your answer to one decimal place.

: 1

What does this ratio indicate about Atunlus condition?

It seems that Atunlu has sufficient current assets to meet its short-term obligations.