Exercise

$1$

$3$

$-$

$7$

A

$($

Algo

$)$

$$Working capital and current ratio LO

$1$

$3$

$-$

$2$

On June

$3$

$0$

$,$

$$Year

$3$

$,$

$$Rundle Company's total current assets were $

$4$

$9$

$9$

$,$

$5$

$0$

$0$

$$and its total current liabilities were $

$2$

$7$

$8$

$,$

$0$

$0$

$0$

$.$

$$On July

$1$

$,$

Year

$3$

$,$

$$Rundle issued a long

$-$

term note to a bank for $

$4$

$0$

$,$

$8$

$0$

$0$

$$cash$.$

Required

a

$.$

$$Compute Rundle's working capital before and after issuing the note.

b

$.$

$$Compute Rundle's current ratio before and after issuing the note.

Note: Round your answers to

$1$

$$decimal place.