please answer alternative b

Fastgo Retail Company Receivables Financing Comparison Fastgo has the following Balance Sheet on January 1 Liabilities and equity 70,000 Assets Cash Accounts Receivable 30,000 Accounts payable 300,000 80,000 50,000 200,000 200,000 400,000 100,000 220,000 720,000 90,000 Inventory loan 20,000 Mortgage payable-current Invento Current Assets Current liabilities 500,000 Mortgage payable-non current Plant and equipment Accumulated Depreciation Total Assets 200,000 Total liabilities 720,000 Common stock Retained earnings Total liabilities and equity 1. Calculate the existing current ratio and debt to assets ratio. Fastgo is in need of cash and is considering two alternatives for converting its accounts receivable to cash. 2. Alternative A Fastgo borrows $240,000 by pledging all of its accounts receivables on January 1 There is a 3% origination fee based on receivables financed and the interest charge is of the average accounts receivable balance each month.Fastgo's customers wil pay the amounts they own directly to the finance company. Fastgo sets up a $10,000 allowance for bad debts since it will be responsible for the bad debts Transactions are as follows Facts Payments Discounts for early payment Returns Write-offs of bad debts January February 170,000 3,500 2,500 115,000 1,000 8,000 a. Record the loan. b. Prepare a balance sheet that reflects your entry above. Adjust retained eanings for any impact on income. c. Calculate the current ratio and debt to assets ratio after the borrowing d. Record all remaining transactions for January and February (T accounts are suggested)