Calculate and analyze liquidity measures Following are the current asset and current liability sections of the balance sheets for Calketch, Inc., at August 31, 2009 and 2008 (in millions):

Required:

a. Calculate the working capital and current ratio at each balance sheet date.
Round your current ratio answer to two decimal places.

b. Describe the change in the firm’s liquidity from 2008 to 2009.

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Current Assets Cash....... Marketable securities. Accounts receivable Inventories..... Total current assets Current Liabilities August 31, 2009 August 31, 2008 $ 12 $ 24 28 40 52 32 72 32 $164 $128 Note payable... $ 12 $ 32 Accounts payable.. 40 56 Other accrued liabilities.. 36 28 Total current liabilities. $ 88 $116