Following are the current asset and current liability sections of the balance sheets for Aroundsquare Inc. at August 31, 2020 and 2019 (in millions):

Required:

a. Calculate the working capital and current ratio at each balance sheet date. Round your current ratio answers to one decimal place.

b. Describe the change in the firm?s liquidity from 2019 to 2020.

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August 31, August 31, 2020 2019 Current Assets Cash .... $51 $12 Marketable securities 72 34 Accounts receivable 35 58 94 Inventories... 169 Total current assets $252 $273 Current Liabilities Note payable Accounts payable $ 59 $70 62 40 Other accrued liabilities 48 31 $180 Total current liabilities $130