The chief financial officer (CFO) of Sheridan Company requested that the accounting department prepare a preliminary balance sheet on December 30, 2022, 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.

Sheridan Company Balance Sheet December 30, 2022
Current assets
Cash		$26,900
Accounts receivable		41,300
Prepaid insurance		6,600		$ 74,800
Equipment (net)				201,700
Total assets				$276,500
Current liabilities
Accounts payable		$ 22,000
Salaries and wages payable		12,000		$ 34,000
Long-term liabilities
Notes payable				90,800
Total liabilities				124,800
Stockholders equity
Common stock		100,000
Retained earnings		51,700		151,700
Total liabilities and stockholders equity				$276,500

(a) 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			enter current ratio rounded to 1 decimal place	:1
Working capital		$	enter a dollar amount

Based on the results in (a), the CFO requested that $22,000 of cash be used to pay off the balance of the accounts payable account on December 31, 2022. 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			enter current ratio rounded to 1 decimal place	:1
Working capital		$	enter a dollar amount