CEO knows that certain debt agreements with its creditors require the company to maintain a current ratio of at least 2:1. Calculate the current ratio and working capital based on the preliminary balance sheet. (Round current ratio to 1 decimal place, e.g. 0.7:1.)

December 30, 2025 Assets Current assets Cash $31,000 Accounts receivable 37,200 Prepaid insurance 6,200 $ 74,400 Equipment (net) 248,000 Total assets $322,400 Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 24,800 Salaries and wages payable 12,400 $ 37,200 Long-term liabilities Notes payable 99,200 Total liabilities 136,400 Stockholders' equity Common stock 124,000 Retained earnings 62,000 186,000 Total liabilities and stockholders' equity $322,400