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Exercise 4-5 (Algorithmic) Liquidity Ratios The accounts and balances that follow are from Kellman, Inc.s general ledger. Accounts Payable $ 13,280 Accounts Receivable 8,460 Cash
Exercise 4-5 (Algorithmic) Liquidity Ratios
The accounts and balances that follow are from Kellman, Inc.s general ledger.
| Accounts Payable | $ 13,280 |
| Accounts Receivable | 8,460 |
| Cash | 1,200 |
| Current Portion of Long-Term Debt | 8,000 |
| Long-Term Investments | 8,320 |
| Marketable Securities | 10,080 |
| Merchandise Inventory | 20,320 |
| Notes Payable (90 days) | 12,000 |
| Notes Payable (2 years) | 16,000 |
| Notes Receivable (90 days) | 20,800 |
| Notes Receivable (2 years) | 8,000 |
| Prepaid Insurance | 320 |
| Property, Plant, and Equipment | 48,000 |
| Property Taxes Payable | 1,000 |
| Income Taxes Payable | 1,580 |
| Common Stock | 15,200 |
| Retained Earnings | 5,860 |
| Salaries Payable | 680 |
| Supplies | 280 |
| Unearned Revenue | 600 |
Compute the (1) working capital and (2) current ratio. Round your current ratio value to two decimal places.
| 1. Working capital: | $ |
| 2. Current ratio: |
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