Current Position Analysis

The bond indenture for the 10-year, 9% debenture bonds issued January 2, 20Y5, required working capital of $100,000, a current ratio of 1.5, and a quick ratio of 1.0 at the end of each calendar year until the bonds mature. At December 31, 20Y6, the three measures were computed as follows:

Current assets:

Cash $102,000

Temporary investments 48,000

Accounts and notes receivable (net) 120,000

Inventories 36,000

Prepaid expenses 24,000

Intangible assets 124,800

Property, plant, and equipment 55,200

Total current assets (net) $510,000

Current liabilities:

Accounts and short-term notes payable $96,000

Accrued liabilities 204,000

Total current liabilities 300,000

Working capital $210,000

Current ratio 1.7 $510,000$300,000

3.Quick ratio 1.2 $115,200$96,000

a.Find the errors in the determination of the three measures of current position analysis. Then provide the correct amounts below. If required, round the ratios to one decimal place.

Working capital $

Current ratio

Quick ratio