On December 31, 2011, Omaha Company's total current assets were $360,000 and its total current liabilities were $200,000. On January 1, 2012, Omaha issued a long-term note to a bank for $10,000 cash.
Required:
(a) Compute Omaha's working capital before and after issuing the note payable.
(b) Compute Omaha's current ratio before and after issuing the note payable.

Question

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The Answer of On December 31, 2011, Omaha Company's total current assets were $360,000 and its total current liabilities were $200,000. On January 1, 2012, Omaha issued a long-term note to a bank for $10,000 cash.
Required:
(a) Compute Omaha's working capital before and after issuing the note payable.
(b) Compute Omaha's current ratio before and after issuing the note payable.

On December 31, 2011, Omaha Company's Total Current Assets Were