The chief financial officer (CFO) of Sarasota 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. Current assets Cash Accounts receivable Prepaid insurance Equipment (net) Total assets Sarasota Corporation Balance Sheet December 30, 2025 Current liabilities Accounts payable Salaries and wages payable Long-term liabilities Notes payable Total liabilities Stockholders' equity Common stock Assets Liabilities and Stockholders' Equity $32,000 42,400 6,600 $21,600 10,800 108,000 70.200 $ 81,000 216,000 $297,000 $ 32,400 86,400 118,800 178.200

Calculate the current ratio and working capital based on the preliminary balance sheet. Round current ratio to 1 decimal ploce, es 0.7:1.1 The chief financial officer (CFO) of Sarawota Corporation requested that the accounting department prepare a preliminary balance sheet on December 30, 2025, so that the Cro could get an ldea ff tow the compary stood. He knows that certain debt agreements with its creditors require the compony to maintain a current ratio of at least 2:1, The prefiminary balance sheet is as follows. Based on the renults in above part, the Cro requested that $21.000 of cash be used to pay oft the balance of the Accounts Payable account on December 31, 2025, Calculate the new current ratio and working copital after the compary tabes these Currentratio 11 Workis capital