Need help in balance sheet:

Application Problem 9-10A

Dividend Aristocrat Inc. (DA) borrowed $216,000 from Grow Business Bank to finance the purchase of equipment costing $162,000 and to provide $54,000 in cash. The legal documentation states that the loan matures in 20 years, and the principal is to be paid in annual instalments of $10,800. The terms of the loan also indicate that DA must maintain a current ratio of 1.25 and cannot pay dividends that will reduce retained earnings below $109,000. The 2020 year-end statement of financial position, immediately prior to the bank loan and the purchase of equipment, follows:

Application Problem 9-10A Dividend Aristocrat Inc. (DA) borrowed $216,000 from Grow Business Bank to finance the purchase of equipment costing $162,000 and to provide $54,000 in cash. The legal documentation states that the loan matures in 20 years, and the principal is to be paid in annual instalments of $10,800. The terms of the loan also indicate that DA must maintain a current ratio of 1.25 and cannot pay dividends that will reduce retained earnings below $109,000. The 2020 year-end statement of financial position, immediately prior to the bank loan and the purchase of equipment, follows: Current assets Non-current assets $115,830 397,170 Current liabilities Long-term liabilities Common shares Retained earnings Total liabilities and shareholders' equity $81,000 216,000 103,000 113,000 Total assets $513,000 $513,000 Prepare the following statement of financial position assuming the maximum divided is declared and paid. Current Assets Current Liabilities Non-current Assets Long-term Liabilities Common Shares Retained Earnings Total Assets Total Assets Total Liabilities and Shareholder's Equity $ $ Calculate the current ratio using the updated statement of financial position. (Round answer to 2 decimal places, e.g. 7.25.) Current Ratio Dividend Aristocrat Inc. J in compliance with the loan agreeement