Moth Company has the following account balances at December 31, 1 answer below »

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Moth Company has the following account balances at December 31, 2010.

Notes payable ($60,000 due after 12/31/11) …. $100,000
Unearned revenue ………………………………. 70,000
Other long-term debt ($90,000 due in 2011) ….. 250,000
Salaries payable ………………………………… 32,000
Utilities payable ………………………………… 13,000
Accounts payable ………………………………. 50,000

In addition, Moth is involved in a lawsuit. Legal counsel feels it is probable Moth will pay damages of $85,000 in 2011.
(a) Prepare the current liability section of Moth’s 12/31/10 balance sheet.
(b) Moth’s current assets are $570,000. Compute Moth’s working capital and current ratio.