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Question: On June 30, 2018, Franza Company’s


On June 30, 2018, Franza Company’s total current assets were $900,000 and its total current liabilities were $360,000. On July 1, 2018, Franza issued a short-term note to a bank for $72,000 cash.

Required:
a. Compute Franza’s working capital before and after issuing the note.
b. Compute Franza’s current ratio before and after issuing the note. Round ratios to two decimal points.


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