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Accounts payable

$    1,800

Accounts receivable

  1,600

Bonds payable (due in 5 years)

80,000

Cash

  4,000

Equipment (net)

  10,000

Land

 25,000

Notes payable (due in 6 months)

    1,200

Salaries payable

    800

Cost of Goods Sold

  3,200

Required:

A.

Compute the current ratio.

B.

Determine the amount of working capital.

C.

Assume that cash is used to pay the balance due on accounts payable.

1. Compute the new current ratio.

2. Compute the new amount of working capital.

D.

Compute the payable turnover (round to one decimal).