*Problem 8-7 (Part Level Submission) The summary financial statements of Swifty Ltd. on December 31, 2017, are as follows: SWIFTY LTD. Balance Sheet, December 31, 2017 Assets Cash Accounts and notes receivable Inventory $14,000 57,000 79,000 Property, plant, and equipment (net) 125,000 $275,000 Liabilities and Shareholders' Equity Accounts and notes payable Long-term debt Common shares Retained earnings $66,000 62,000 60,000 87,000 $275,000 The following errors were made by the inexperienced accountant on December 31, 2016, and were not corrected 1. The inventory was overstated by $13,000 2. A prepaid expense of $2,400 was omitted. (It was fully expensed in 2016.) 3. Accrued revenue of $2,500 was omitted. (It was recognized when cash was received in 2017.) 4. A supplier's invoice for $1,700 for purchases made in 2016 was not recorded until 2017 On December 31, 2017, there were further errors: 5. The inventory was understated by $17,000 6. A prepaid expense of $750 was omitted 7. Accrued December 2017 salaries of $1,800 were not recognized 8. Unearned income of $2,300 was recorded in the 2017 revenue 9. In addition, it was determined that $20,000 of the accounts payable were long-term, and that a $500 dividend was reported as dividend expense and deducted in calculating net income The net income reported on the books for 2017 was $66,000 Calculate the working capital, current ratio, and debt to equity ratio for Swifty Ltd. based on the original balance sheet information provided above 52.75. Working capital to 1 Current ratio to 1 Debt-to-equity ratio