Current ratio before and after issuing the note

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Reference no: EM131208387

On June 30, 2014, Freeman Company’s total current assets were $496,500 and its total current liabilities were $274,500. On July 1, 2014, Freeman issued a short-term note to a bank for $39,800 cash.

Required a. Compute Freeman’s working capital before and after issuing the note.

b. Compute Freeman’s current ratio before and after issuing the note. (Round your answers to 2 decimal places.)

Reference no: EM131208387

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