Evans, Inc., had current liabilities at April 30 of $62,200. The firm's current ratio at that date was 1.9.

Required:

a. Calculate the firm's current assets and working capital at April 30.

b. Assume that management paid $12,900 of accounts payable on April 29. Calculate the current ratio and working capital at April 30 as if the April 29 payment had not been made. (Round "Current ratio" answer to 2 decimal places.)

c. Identify the changes, if any, to working capital and the current ratio that would be caused by the April 29 payment.

You have accumulated $7,350 and are looking for the best rate of return that can be earned over the next year. A bank savings account will pay 8%. A one-year bank certificate of deposit will pay 10%, but the minimum investment is $10,350.

Required:

a. Calculate the amount of return you would earn if the $7,350 were invested for one year at 8%.

b. Calculate the net amount of return you would earn if $3,000 were borrowed at a cost of 18%, and then $10,350 were invested for one year at 10%. (Round intermediate calculations.)

c. Calculate the net rate of return on your investment of $7,350 if you accept the strategy of part b. (Round intermediate calculations. Round your answer to 2 decimal places.)