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On June 30, 2008, Thorpe Company's total current assets were $250,000 and its total current liabilities were $125,000. On July 1, 2008, Thorpe issued a long-term note to a bank for $25,000 cash.
Required
a. Compute Thorpe's working capital before and after issuing the note.
b. Compute Thorpe's current ratio before and after issuing the note.
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