The bond indenture for the 10-year, 8% debenture bonds dated January 2, 2018, required working capital of $1,461,400, a current ratio of 4.1, and quick ratio of 2.7 at the end of each calendar year until the bonds mature. At December 31, 2019, the three measures were computed as follows: 1. Current assets: Cash $186,000 232,500 Temporary investments Accounts receivable (net) Inventories 372,000 294,500 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 $224,000 Accrued liabilities 256,000 Total current liabilities (430,000) Working capital $1,566,000 $2,046,000 2. Current ratio 4.3 $480,000 $1,023,000 3. Quick ratio 4.6 $224,000 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 Previous Next Email Submit Test for Grading WE 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 $224,000 Accrued liabilities 256,000 (480,000) Total current liabilities Working capital $1,566,000 2. Current ratio 4.3 $2,046,000+ $480,000 4.6 $1,023,000+ 3. Quick ratio $224,000 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 b. Based on the data, all of the following are true, regarding the band indenture, except: Previous Next