On December 31,Year 1,Houston Company's Total Current Assets Were $560,000

On December 31,Year 1,Houston Company's total current assets were $560,000 and its total current liabilities were $420,000.On January 1,Year 2,Houston issued a long-term note to a bank for $30,000 cash.
Required:
(a)Compute Houston's working capital before and after issuing the note payable.
(b)Compute Houston's current ratio before and after issuing the note payable.(Round your answer to two decimal places.)

Correct Answer:

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(a)Working capital before issuing note p...

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