The chief financial officer (CFO) of Martinez 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. Martinez Corporation Balance Sheet December 30, 2025 Current assets Cash Accounts receivable Prepaid insurance Equipment (net) Total assets Assets $28,000 34,800 6.320 $69,120 192,000 $261,120 Liabilities and Stockholders' Equity Current liabilities Accounts payable $19,200 Salaries and wages payable 9,600 $28,800 Long-term liabilities Notes payable Total liabilities 76,800 105,600 Stockholders' equity Common stock 96,000 Retained earnings 59,520 155,520 13