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The chief financial officer (CFO) of Flounder Corporation requested that the accounting department prepare a preliminary balance sheet on December 30,2025, so that the CFO
The chief financial officer (CFO) of Flounder 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. Liabilities and Stockholders' Equity 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 $18,000 9,000$27,000 99,00072,000 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 \$
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