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Question - Current Liabilities and Ratios - Several accounts that appeared on Snow's 2017 balance sheet are as follows:
Accounts Payable $63,000
Equipment $950,000
Marketable Securities 40,000
Taxes Payable 15,000
Accounts Receivable 20,000
Retained Earnings 250,000
Notes Payable, 12%, due in 60 days 20,000
Inventory 165,000
Capital Stock 1,150,000
Allowance for Doubtful Accounts 20,000
Salaries Payable 10,000
Land 600,000
Cash 65,000
Required -
1. Compute Snow's working capital.
2. Compute Snow's current ratio. Round your answer to one decimal place.
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