Moth Company has the following account balances at December 31, 2010.
Notes payable ($60,000 due after 12/31/11)
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 Moths 12/31/10 balance sheet.
(b) Moths current assets are $570,000. Compute Moths working capital and current ratio.