<span>sweat equity, the patent lawyer is doing for a project or enterprise in the form of effort to work for the ownership interest in a business that will increase in value it is a preferred mode of building equity for entrepreneurs who do have much money in their start-up ventures since they may be unable to provide as much financial capital to their business</span>
Answer:
Before issuing the note
Current ratio
= <u>Current assets</u>
Current liabilities
= <u>$502,000</u>
$274,000
= 1.83: 1
After issuing the note
Current ratio
= <u>$538,400</u>
$274,000
= 1.96:1
Explanation:
Current ratio is the ratio of current assets to current liabilities. Before issuing the note, current assets amounted to $502,000 while current liabilities were $274,000. After issuing the note, current assets increased to $538,400 as a result of $39,400 received on note issue. This increases the current ratio from 1.83 to 1.96.
