Current Ratio and Working Capital
the Balance Sheet of Red

Current ratio and working capital
The balance sheet of Red Missile Company contained the following items, among others:
$$\begin{array} { | l | r | } \hline \text { Cash } & \$ 180,000 \\\hline \text { Accounts Receivable } & \$ 84,000 \\\hline \text { Inventory } & \$ 124,000 \\\hline \text { Store Equipment (net) } & \$ 236,000 \\\hline \text { Other Assets } & \$ 67,500 \\\hline \text { Mortgage Payable (due in 3 years) } & \$ 169,000 \\\hline \text { Note Payable (due in 10 days) } & \$ 163,000 \\\hline \text { Accounts Payable } & \$ 96,000 \\\hline \text { Capital Stock } & \$ 67,500 \\\hline \text { Retained Earnings } & \$ 197,000 \\\hline\end{array}$$
(a) From the above information compute:
(1) Current assets: $_______
(2) Current liabilities: $______
(3) The current ratio: ______ to 1
(4) 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) Working capital: $______