Several accounts that appeared on Kruse€™s 2014 balance sheet are as follows:

Required
1. Prepare the Current Liabilities section of Kruse€™s 2014 balance sheet.
2. Compute Kruse€™s working capital.
3. Compute Kruse€™s current ratio. What does this ratio indicate about Kruse€™s condition?

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