FINC211 Assignment 1 Students' names Jordan Gold, the CFO of CANCO Corporation, requested that the accounting department prepare a preliminary balance sheet on December 30, 2020, so that he could get an idea of how the company stood. He knows that certain debt agreements with CANCO's creditors require the company to maintain a current ratio of at least 2:1. The preliminary balance sheet is as follows: CANCO Corporation Balance Sheet December 30, 2020 Current Assets Current Liabilities Cash $25,000 Accounts Payable $20,000 Accounts Receivable 30,000 Salaries Payable 10,000 $30,000 Prepaid Insurance 5,000 $60,000 Long Term Liabilities Equipment (net) 200,000 Notes Payable 80.000 Total Assets $260,000 Total Liabilities 110,000 Stockholders' equity Common Stock 100,000 Retained Earnings 50.000 150,000 Total Liabilities and Stockholders' equity $260,000 Required: 1. Calculate the current ratio and working capital based on the preliminary balance sheet