The chief financial officer (CFO) of Ayayai Corporation requested that the accounting department prepare a preliminary balance sheet on December 30, 2025, so that the CFO could get an idea of how the company stood. He knows that certain debt agreements with its creditors require the company to maintain a current ratio of at least 2:1. The preliminary balance sheet is as follows. Ayayai Corporation Balance Sheet December 30, 2025 Current assets Cash Accounts receivable Prepaid insurance Equipment (net) Total assets Assets $20,000 24,000 6,400 $50,400 160,000 $210,400 Liabilities and Stockholders' Equity Current liabilities Accounts payable $16,000 Salaries and wages payable 8,000 $24,000 Long-term liabilities Notes payable Total liabilities Stockholders' equity 64,000 88,000 Common stock Retained earnings Total liabilities and stockholders' equity 80,000 42,400 122,400 $210,400