Net Working Capital, Current Ratio, and Quick Ratio. Charles Corporation’s balance sheet at December 31, 20X7, shows the following:
Current assets
Cash $4,000
Marketable securities 8,000
Accounts receivable 100,000
Inventories 120,000
Prepaid expenses 1,000
Total current assets $233,000
Current liabilities
Notes payable $5,000
Accounts payable 150,000
Accrued expenses 20,000
Income taxes payable 1,000
Total current liabilities $176,000
Long-term liabilities $340,000
Determine the following: (a) net working capital; (b) current ratio; and (c) quick ratio.
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