Problem: Module $4$ Textbook Problem $4$

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

On June $30,$ Year $3,$ Adams Company's total current assets were $$502,500$ and its total current liabilities were $$278,000.$

On July $1,$ Year $3,$ Adams issued a long$-$term note to a bank for $$41,200$ cash.

Required

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

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

$\backslash$table$[[,,\backslash$table$[[$Before the$],[$transaction$]],\backslash$table$[[$After the$],[$transaction$]]],[$a$.,$Working capital,$$,224,500,],[$b$.,$Current ratio,,$]]$