Following are the current asset and current liability sections of the balance sheets for Calketch, Inc., at August 31, 2011 and 2010 (in millions):

Required:
a. Calculate the working capital and current ratio at each balance sheet date. Round your current ratio answers to two decimal places.
b. Describe the change in the firm's liquidity from 2010 to2011.

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August 31, 2011 August 31, 2010 Current Assets Cash Marketable securities... S12 28 52 72 $164 $ 24 40 32 32 $128 Accounts receivable.. Inventories Total current assets Current Liabilities Note payable.... Accounts payable.... Other accruad liabilities s 12 40 36 S 88 $ 32 56 28 116 Total current iabilities. .