The chief financial officer (CFO) ofBlossom Companyrequested 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.

Blossom Company

Balance Sheet

December 30, 2022Current assetsCash$26,500Accounts receivable38,600Prepaid insurance6,900$72,000Equipment (net)201,700Total assets$273,700Current liabilitiesAccounts payable$24,000Salaries and wages payable12,000$36,000Long-term liabilitiesNotes payable86,000Total liabilities122,000Stockholders' equityCommon stock100,000Retained earnings51,700151,700Total liabilities and stockholders' equity$273,700

Part 1

New attempt is in progress. Some of the new entries may impact the last attempt grading.

Your answer is partially correct.

(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.)

What is the answer for current ratio and working capital?

Current ratio = :1

Working capital $