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Problem: Module 4 Textbook Problem 3 Learning Objective: 4-2 Calculate ratios for assessing a company's liquidity On June 30, Year 3, Campbell Company's total current

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Problem: Module 4 Textbook Problem 3 Learning Objective: 4-2 Calculate ratios for assessing a company's liquidity On June 30, Year 3, Campbell Company's total current assets were $495,500 and its total current liabilities were $270,500. On July 1. Year 3, Campbell issued a short-term note to a bank for $40,200 cash. Required a. Compute Campbell's working capital before and after Issuing the note. b. Compute Campbell's current ratio before and after issuing the note. (Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Before the After the transaction transaction Working $ 225,000 capital $ 265,200 Current ratio 1.83 1.98 a b Problem: Module 4 Textbook Problem 4 Learning Objective: 4-2 Calculate ratios for assessing a company's liquidity On June 30, Year 3, Baird Company's total current assets were $497,500 and its total current liabilities were $276,500. On July 1, Year 3, Baird issued a long-term note to a bank for $38,400 cash. Required a. Compute Baird's working capital before and after issuing the note. b. Compute Bard's current ratio before and after Issuing the note. (Round your answers to 1 decimal place.) Before the transaction After the transaction a Working capital Current ratio b. 4-2 Calculate ratios for assessing a company's liquidity 4-3 Calculate ratios for assessing a company's solvency The balance sheet for Adams Corporation follows: Current assets Long-term assets (net) Total assets Current liabilities Long-term liabilities Total liabilities Common stock and retained earnings Total liabilities and stockholders' equity $ 239,000 767,000 $1,006,000 $ 143,000 447,000 590,000 416,000 $1,006,000 Required Compute the following. (Round "Ratios" to 1 decimal place.) Working capital Current ratio Debt-to-assets ratio Debt-to-equity ratio %

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