Problem: Module $4$ Textbook Problem $3$

Learning Objective: $4-2$ Calculate ratios for assessing a company's liquidity

On June $30,$ Year $3,$ Franklin Company's total current assets were $$502,500$ and its total current liabilities were $$273,500.$ On July $1,$

Year $3,$ Franklin issued a short$-$term note to a bank for $$40,200$ cash.

Required

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

b$.$ Compute Franklin's current ratio before and after issuing the note. $($Round your answers to $2$ decimal places.$)$

Answer is complete but not entirely correct.