Most companies pay current liabilities ?

out of current assets.

by issuing interest-bearing notes payable.

by issuing stock.

by creating long-term liabilities.

Monkee's Company has current assets of $50,000, current liabilities of $40,000, long-term assets of $90,000 and long-term liabilities of $40,000. Monkee's Company's working capital and its current ratio are:

($60,000) and 1.75:1

$60,000 and 1.25:1

$10,000 and 1.75:1

$10,000 and 1.25:1