Diane Corporation is preparing its year-end balance sheet. The company records show the following selected amounts at the end of the year: Total assets $ 610,000 Total noncurrent assets 336,000 Liabilities: Notes payable (8%, due in 5 years) 23,000 Accounts payable 56,000 Income taxes payable 11,000 Liability for withholding taxes 5,000 Rent revenue collected in advance 9,000 Bonds payable (due in 15 years) 108,000 Wages payable 9,000 Property taxes payable 5,000 Note payable (10%, due in 6 months) 12,000 Interest payable 700 Common stock 100,0001-a. What is the amount of current liabilities? 1-b. Compute working capital.
2. Would your computation be different if the company reported $250,000 worth of contingent liabilities in the notes to its financial statements?