Compute the current ratio and net working capital

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Reference no: EM13176553

1- The balance sheet of Red Missile Company contained the following items, among others:

919_Balance sheet of Red Missile Company.png

(a) From the above information compute:

(1) Current assets: $_______

(2) Current liabilities: $______

(3) The current ratio: ______ to 1

(4) Net Working capital: $______

(b) Assume that Red Missile Company pays the note payable of $163,000, thus reducing cash to $17,000. Compute the following after the completion of this transaction:

(1) The current ratio: ______ to 1

(2) Net Working capital: $______

Reference no: EM13176553

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