Following are the current asset and current liability sections of the balance sheets for Around square Inc. at August 31, 2023 and 2022 (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 2022 to 2023.

Transcribed Image Text:

Current Assets Cash.... Marketable securities Accounts receivable. Inventories..... Total current assets Current Liabilities August August 31, 2023 31, 2022 $51 72 75 54 $252 $12 34 58 169 $273