The chief financial officer (CFO) of Myeneke Corporation 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.

Myeneke Corporation Balance Sheet December 30, 2017
Current assets
Cash		$ 25,000
Accounts receivable		30,000
Prepaid insurance		5,000		$ 60,000
Equipment (net)				200,000
Total assets				$ 260,000
Current liabilities
Accounts payable		$ 20,000
Salaries and wages payable		10,000		$ 30,000
Long-term liabilities
Notes payable				80,000
Total liabilities				110,000
Stockholders equity
Common stock		100,000
Retained earnings		50,000		150,000
Total liabilities and stockholders equity				$ 260,000

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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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, 2017. 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				:1
Working capital