Gloria Company's December 31, 2021, trial balance includes the following accounts:

Accounts payable $ 29,400 Accounts receivable 52,000 Interest payable 700 Bank demand loan payable 10,000 Cash.............. 3,000 Income taxes payable 1,200 Inventory................ 27,000 Mortgage payable 60,000 Note payable............. 5,000 Prepaid expenses 1,200

Other information:

The mortgage payable is due in annual principal instalments of $4,000 per year.

The note payable is due in full in 18 months' time.

Industry average working capital ratio is 2.5:1

Instructions

a) Prepare the current liabilities section of Gloria's December 31, 2021, balance sheet.

b) Calculate and comment on Gloria's working capital and current ratio