On June 30, 2018, Thornton Companys total current assets were $499,500 and its total current liabilities were $275,000. On July 1, 2018, Thornton issued a long-term note to a bank for $40,200 cash.

Required

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

2. Compute Thorntons 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