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

Question:

20Y2 20Y1 Current assets $2,175,000 $1,900,000 Current liabilities 1,500,000 1,250,000

a. Determine the working capital and current ratio for 20Y2 and 20Y1.

b. Does the change in the current ratio from 20Y1 to 20Y2 indicate a favorable or an unfavorable change?

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