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The chief financial officer (CFO) of Sandhill Ca requested that the accounting department prepare a...

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Accounting

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The chief financial officer (CFO) of Sandhill Ca requested that the accounting department prepare a preliminary balance sheet on December 30,2022 , so that the CFO could get an idea of how the company stood. He knows that certain debt agreements with its creditors require the company to maintain a current ratio of at least 2:1. The preliminary balance sheet is as follows. (a) Your answer is correct. (a) Calculate the current ratio and working capital based on the preliminary balance sheet. (Round current ratio to 1 decimal place, es. 0.7:1) Current ratio :1 Working capital Based on the results in (a), the CFO requested that $20,000 of cash be used te pay off the balance of the accounts payable account on December 31,2022. Calculate the new current ratio and working capital after the company takes these actions. (Round current ratio to 1 decimal place, e.g. 0.7:1. ) Current ratio :1 Working capital

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