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Crawford Company started the year with $30,000 in its Common Stock account and a credit balance in Retained Earnings of $12,000. During the year, the company earned net income of $24,000 and declared and paid $10,000 of dividends. In addition, the company sold additional common stock amounting to $14,000. As a result, the amount of its retained earnings at the end of the year would be: a. $70,000 b. $26,000 c. $56,000 d. $40,000
The company's current and total liabilities were $267,000 and $600,000, respectively. Compute the amount of working capital and the current ratio using this information.
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