Liquidity Ratios

e5A. Business appliCation The accounts and balances that follow are from Kell- man, Inc.s general ledger. Compute the (1) working capital and (2) current ratio. (Round to one decimal place.)

Accounts Payable	$13,280
Accounts Receivable	8,160
Cash	1,200
Current Portion of Long-Term Debt	8,000
Long-Term Investments	8,320
Marketable Securities	10,080
Merchandise Inventory	20,320 (Continued)

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