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Evans, Inc., had current liabilities at April 30 of $74,600. The firm's current ratio at that date was 1.8.
Required:
a. Calculate the firm's current assets and working capital at April 30.
b. Assume that management paid $12,500 of accounts payable on April 29. Calculate the current ratio and working capital at April 30 as if the April 29 payment had not been made. (Round "Current ratio" answer to 2 decimal places.)
c. Identify the changes, if any, to working capital and the current ratio that would be caused by the April 29 payment.
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