Question: The bond indenture for the 10-year, 8% debenture bonds dated January 2, 20Y8, required working capital of $200,000, a current ratio of 2.0, and a

The bond indenture for the 10-year, 8% debenture bonds dated January 2, 20Y8, required working capital of $200,000, a current ratio of 2.0, and a quick ratio of 1.0 at the end of each calendar year until the bonds mature. At December 31, 20Y9, the three measures were computed as follows:

1. Current assets:
Cash $186,000
Temporary investments 232,500
Accounts receivable (net) 372,000
Inventories 294,500
Prepaid expenses 77,500
Intangible assets 46,500
Property, plant, and equipment 837,000
Total current assets (net) $2,046,000
Current liabilities:
Accounts and short-term notes payable $189,000
Accrued liabilities 216,000
Total current liabilities (405,000)
Working capital $1,641,000
2. Current ratio 5.1 $2,046,000 $405,000
3. Quick ratio 5.4 $1,023,000 $189,000

a. There are errors in the calculation of the three measures of current position analysis. Determine the correct amounts. Round ratios to two decimal places.

Working capital
Current ratio
Quick ratio

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