The chief financial officer (CFO) of Culver Corporation requested that the accounting department prepare a preliminary...

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The chief financial officer (CFO) of Culver 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. Culver Corporation Balance Sheet December 30, 2025 Current assets Cash Accounts receivable Prepaid insurance Equipment (net) Total assets Assets $35,000 40,800 7,720 $ 83,520 232,000 $315,520 Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 23,200 Salaries and wages payable 11,600 $34,800 Long-term liabilities The chief financial officer (CFO) of Culver 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. Culver Corporation Balance Sheet December 30, 2025 Current assets Cash Accounts receivable Prepaid insurance Equipment (net) Total assets Assets $35,000 40,800 7,720 $ 83,520 232,000 $315,520 Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 23,200 Salaries and wages payable 11,600 $34,800 Long-term liabilities