Franklin Industries borrowed $491,000 from Security Bankers to finance the purchase of equipment costing $358,000 and to provide $133,000 in cash. The note states that the loan matures in 20 years, and the principal is to be paid in annual installments of $24,550. The terms of the loan also indicate that Headland must maintain a current ratio of 2:1 and cannot pay dividends that will reduce retained earnings below $197,000. The balance sheet of Headland, immediately prior to the bank loan and the purchase of equipment, follows:

Current assets		$ 118,000		Current liabilities		$ 99,000
Noncurrent assets		$ 1,480,000		Long-term liabilities		$ 300,000
				Common stock		$ 983,000
				Retained earnings		$ 216,000
Total assets		$1,598,000		Total liabilities and shareholders equity		$ 1,598,000
The board of directors of Franklin is about to declare a dividend to be paid to the shareholders early next year. After accepting the loan and purchasing the equipment, how large a dividend can the board pay and not violate the terms of the debt covenant? Calculate the current ratio after the bank loan and purchase of equipment. Answer should include current ratio and dividend $.