Financial Accounting HW

Several accounts that appeared on Kruse’s 2012 balance sheet are as follows:
Accounts Payable  $  55,000  Equipment  $950,000
Marketable Securities  40,000  Taxes Payable  15,000
Accounts Receivable  180,000  Retained Earnings  250,000
Notes Payable, 12%, due in 60 days  20,000  Inventory  85,000
Capital Stock  1,150,000  Allowance for Doubtful Accounts  20,000
Salaries Payable  10,000  Land  600,000
Cash  15,000
Required
1.  Prepare the Current Liabilities section of Kruse’s 2012 balance sheet.
2.  Compute Kruse’s working capital.
3.  Compute Kruse’s current ratio. What does this ratio indicate about Kruse’s condition?