Current Liabilities and Ratios Several accounts that appeared on Kruse€™s 2010 balance sheet are as follows:

Required
1. Prepare the Current Liabilities section of Kruse€™s 2010 balance sheet.
2. Compute Kruse€™s working capital.
3. Compute Kruse€™s current ratio. What does this ratio indicate about Kruse€™scondition?

S 55,000 Equipment Accounts Payable Marketable Securities Accounts Receivable Notes Payable, 12%, due in 60 days Capital Stock Salaries Payabie Cash $950,000 15,000 250,000 85,000 Allowance for Doubtful Accounts 20,000 600,000 40,000 Taxes Payable 180,000 Retained Earnings 20,000 Inventory 1,150,000 10,000 Land 15,000