Problem: Module $4$ Textbook Problem $4$

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

On June $30,$ Year $3,$ Thornton Company's total current assets were $$495,000$ and its total current liabilities were $$276,000.$ On July

Year $3,$ Thornton issued a long$-$term note to a bank for $$41,600$ cash.

Required

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

b$.$ Compute Thornton's current ratio before and after issuing the note. $($Round your answers to $1$ decimal place.$)$

Answer is complete but not entirely correct.