The chief financial officer (CFO) of Wildhorse Co. 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.

Current assets
Cash $26,581
Accounts receivable 31,869
Prepaid insurance 6,630 $65,080
Equipment (net) 201,570
Total assets $266,650
Current liabilities
Accounts payable $21,581
Salaries and wages payable 11,869 $33,450
Long-term liabilities
Notes payable 81,630
Total liabilities 115,080
Stockholders’ equity
Common stock 100,000
Retained earnings 51,570 151,570
Total liabilities and stockholders’ equity $266,650

Required:
Calculate the current ratio and working capital based on the preliminary balance sheet.