The chief financial officer (CFO) ofMyeneke Corporationrequested 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.

Myeneke Corporation

Balance Sheet

December 30, 2022

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

(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 :1

Working capital. $