- The chief financial officer (CFO) of Blossom Company requested that the accounting department prepare a preliminary balance sheet on December 30, 2022. 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. $26,900 23,300 6,800 $ 57,000 201,100 $258,100 Blossom Company Balance Sheet December 30, 2022 Current assets Cash Accounts receivable Prepaid insurance Equipment (net) Total assets Current liabilities Accounts payable Salaries and wages payable Long-term liabilities Notes payable Total liabilities Stockholders' equity Common stock Retained earnings Total liabilities and stockholders' equity $ 20,000 10,000 $ 30,000 77,000 107.000 100,000 51,100 151,100 $258.100 Question 5 of 6 075 (a) Calculate the current ratio and working capital based on the preliminary balance sheet. (Round current ratio to 1 decimal place, e.g. 0.7: 1.) Current ratio :1 Working capital $ eTextbook and Media Save for Later Attempts: 1 of 15 used Submit Answer Part 2 (b) Based on the results in (a), the CFO requested that $20,000 of cash be used to pay off the balance of the accounts payable account on December 31, 2022. Calculate the new current ratio and working capital after the company takes these actions. (Round current ratio to 1 decimal place, e.g. 0.7: 1.) Current ratio Working capital $