Working capital and current ratio Obj. 6 Current assets and current liabilities for Brimstone Company follow:

20Y4 20Y3 Current assets $1,586,250 $1,210,000 Current liabilities 705,000 550,000

a. Determine the working capital and current ratio for 20Y4 and 20Y3.

b. Does the change in the current ratio from 20Y3 to 20Y4 indicate a favorable or an unfavorable change?

AppendixLO1