Income Taxes Payable $ 51,250

Cash 20,000

Notes Payable, 10% , due 6/2/2018 1,000

Accounts Receivable 267,500

Equipment 950,000

Accounts Payable 104,400

Inventory 85,000

Land 600,000

Allowance for Doubtful Accounts 2,000

Discount on Notes Payable 150

Notes Receivable, maturity 2/1/2024 5,000

Current Maturities of Long-Term Debt 6,900

Unearned Revenue 4,320

Interest Payable 1,010

Wages Payable 6,000

Marketable Securities 40,000

Capital Stock 900,000

REQUIRED:

1.Compute Cole's working capital.

2.Compute Cole's current ratio.What does this ratio indicate about Cole's financial condition?