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The chief financial officer (CFO) of Oriole Corporation requested that the accounting department prepare a preliminary statement of financial position on December 20, 2018

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The chief financial officer (CFO) of Oriole Corporation requested that the accounting department prepare a preliminary statement of financial position on December 20, 2018. He knows that certain debt agreements with its lenders require the company to maintain a current ratio of at least 2:1 and wants to know how the company is doing. The preliminary statement of financial position follows: 
ORIOLE CORPORATION Statement of Financial Position December 20. 2018 
Assets Current assets Cash Accounts receivable Prepaid insurance Total current assets Equipment Total assets 
20,000 32,000 5,000 57,000 220,000 277,000 
liabilities Current liabilities Accounts payable Salaries payable Non-current liabilities Bank loan payable Total liabilities Shareholders equity Common shares Retained earnings Total liabilities and shareholder20,000 20.000 
40,000 

60,000 
100,000 
$90,000 87,000 177,000 277,000 

Calculate  the current ratio based on the data in the preliminary statement of financial position
Current ratio 1 

Based on the results in (a). the CFO requested that 20,000 of the cash be used to payoff the balance of the accounts payable account on December 21 Calculate the current ratio after this payment is made. assuming there are no further changes to current assets and current liabilities