Exercise 13-7A (Algo) Working capital and current ratio LO 13-2 On June 30, Year 3, Finch Companys total current assets were $499,500 and its total current liabilities were $275,500. On July 1, Year 3, Finch issued a long-term note to a bank for $41,000 cash. Required a. Compute Finchs working capital before and after issuing the note. b. Compute Finchs current ratio before and after issuing the note. (Round your answers to 1 decimal place.)

Before the transaction After the transaction

a. Working capital $224,000 __________

b.Current ratio 1.8 __________