On June 30, 2014, Freeman Company’s total current assets were $496,500 and its total current liabilities were $274,500. On July 1, 2014, Freeman issued a short-term note to a bank for $39,800 cash.
Required a. Compute Freeman’s working capital before and after issuing the note.
b. Compute Freeman’s current ratio before and after issuing the note. (Round your answers to 2 decimal places.)