The accounts and balances that follow are from Kellman, Inc.'s general ledger. Compute the
(1) Working capital and
(2) Current ratio.
Accounts Payable............................$13,280
Accounts Receivable...........................8,160
Cash..............................................1,200
Current Portion of Long-Term Debt.........8,000
Long-Term Investments........................8,320
Marketable Securities.........................10,080
Merchandise Inventory.......................20,320
Notes Payable (90 days)....................$12,000
Notes Payable (2 years)......................16,000
Notes Receivable (90 days)..................20,800
Notes Receivable (2 years)....................8,000
Prepaid Insurance.................................320
Property, Plant, and Equipment.............48,000
Property Taxes Payable........................1,000
Income Taxes Payable..........................1,580
Common Stock.................................15,200
Retained Earnings..............................5,860
Salaries Payable...................................680
Supplies.............................................280
Unearned Revenue................................600