On June 30, 2018, Perez Companys total current assets were $501,500 and its total current liabilities were $277,000. On July 1, 2018, Perez issued a long-term note to a bank for $39,600 cash.

Required

1. Compute Perezs working capital before and after issuing the note.

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

Before the transaction After the transaction a. Working Capital b. Current Ratio