27. (10 min.)

     (a)                          TRUMPY COMPANY

    

     Current Liabilities

     ———————————————————

     Current portion of long-term debt                           $25,000          

     Notes payable, 3-month                                            90,000

     Accounts payable                                                     74,000

     Sales tax payable                                                     38,000

     Interest payable                                                          3,000

                                                                                    ————

       Total Current Liabilities                                    $230,000

                                                    

    

     (b) The liquidity position looks favorable. If all current   

         liabilities are paid out of current assets, there would still be

         $170,000 of current assets (working capital). The current ratio

         is 1.74:1 and it appears as though Trumpy Company has sufficient

         current resources to meet current obligations when due.