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You have been given responsibility for overseeing a banks small business loans division. The bank has included loan covenants requiring a minimum current ratio of 1.30 in all small business loans. When you ask which inventory costing method the covenant assumes, the previous loans manager gives you a blank look. To explain to him that a companys inventory costing method is important, you present the following balance sheet information.

Current assets other than inventory	$	28
Inventory		(a	)
Other (noncurrent) assets		136
Total assets	$	(b	)
Current liabilities	$	48
Other (noncurrent) liabilities		56
Stockholders equity		(d	)
Total liabilities and stockholders equity	$	(c	)

You ask the former loans manager to find amounts for (a), (b), (c), and (d) assuming the company began the year with 3 units of inventory at a unit cost of $13, then purchased 6 units at a cost of $14 each, and finally purchased 4 units at a cost of $18 each. A year-end inventory count determined that 2 units are on hand.

1) Determine the amount for (a) using Weighted Average, and then calculate (b) through (d).

2) Determine the current ratios using Weighted Average.