Question: Data extracted from a year-end balance sheet are shown below. Compute the working capital for this firm. What would the current ratio be, and what

Data extracted from a year-end balance sheet are shown below. Compute the working capital for this firm. What would the current ratio be, and what is the significance for this firm?

Accounts payable $6,250 Accounts receivable $15,000 Cash $4,500 Securities $10,000 Inventory $8,760

Accounts payable $6,250 Accounts receivable $15,000 Cash $4,500 Securities $10,000 Inventory $8,760 Long-term bonds $5,000 Plant equipment. $68,000 Owners' capital $40,000

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