The chief financial officer (CFO) of Bonita Industries requested that the accounting department prepare a preliminary balance sheet on December 30, 2017, 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 Bonita Industries Balance Sheet December 30, 2017 Current assets Cash Accounts receivable Prepaid insurance $26,600 32,000 Equipment (net) Total assets Current liabilities 6,400 $ 65,000 202,000 $267,000 Accounts payable $21,600 Salaries and wages payable 12,000 $33,600 Long-term liabilities 81,400 115,000 Notes payable Total liabilities Stockholders' equity Common stock 100,000 Retained earnings 52,000 152,000 Total liabilities and stockholders' equity $267,000