Exercise 14-6A (Algo) Working capital and current ratio LO 14-2

On June 30, Year 3, Solomon Companys total current assets were $495,500 and its total current liabilities were $277,000. On July 1, Year 3, Solomon issued a short-term note to a bank for $39,800 cash.

Required

1. Compute Solomons working capital before and after issuing the note.
2. Compute Solomons current ratio before and after issuing the note.

Note: Round your answers to 2 decimal places.