On June 30, 2014, Freeman Companys total current assets were $800,000 and its total current liabilities were $400,000. On July 1, 2014, Freeman issued a long-term note to a bank for $80,000 cash.

a.

Compute Freemans working capital before and after issuing the note.

	Working Capital
Before the transaction
After the transaction

b.

Compute Freemans current ratio before and after issuing the note. (Round your answers to 1 decimal place.)

	Current Ratio
Before the transaction
After the transaction