Response to the following problem:
Using the following accounts and balances taken from a year-end balance sheet, compute working capital and the current ratio.
Account Payable $6,500
Accounts Receivable 5,000
Cash 2,000
Common Stock 10,000
Marketable securities 1,000
Merchandise inventory 6,000
notes payable in three years 6,500 property,
plant and equipment 20,000
retained earnings 14,000.