Grouper Company provides you with the following balance sheet information as of December 31, 2025.

In addition, Grouper reported net income for 2025 of \(\$ 16,000\), income tax expense of \(\$ 3,200\), and interest expense of \(\$ 1,300\).

a. Compute the current ratio and working capital for Grouper for 2025.

b. Assume that at the end of 2025 , Grouper used \(\$ 3,000\) cash to pay off \(\$ 3,000\) of accounts payable. How would the current ratio and working capital have changed?

c. Compute the debt to assets ratio and the times interest earned for Grouper for 2025.

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Current assets Long-term assets Total assets $11,500 26,500 $38,000 Current liabilities Long-term liabilities Stockholders' equity Total liabilities and stockholders' equity $12,000 14,000 12,000 $38,000