Current Position Analysis

The bond indenture for the 10-year, 9% debenture bonds issued January 2, 2015, requiredworking capitalof $100,000, acurrent ratioof 1.5, and aquick ratioof 1.0 at the end of each calendar year until the bonds mature. At December 31, 2016, the three measures were computed as follows:

1.	Current assets:
		Cash	$102,000
		Temporary investments	48,000
		Accounts and notes receivable (net)	120,000
		Inventories	36,000
		Prepaid expenses	24,000
		Intangible assets	124,800
		Property, plant, and equipment	55,200
			Total current assets (net)		$510,000
	Current liabilities:
		Accounts and short-term notes payable	$96,000
		Accrued liabilities	204,000
			Total current liabilities		300,000
	Working capital		$210,000
2.	Current ratio	1.7	$510,000		$300,000
3.	Quick ratio	1.2	$115,200		$96,000

a. Find the errors in the determination of the three measures of current position analysis. Then provide the correct amounts below. If required, round the ratios to one decimal place.

Working capital	$
Current ratio
Quick ratio

b. Is the company satisfying the terms of the bond indenture?