Working Capital and Current Ratio The balance sheet of Stevenson Inc. includes the following items:

Required 1. Determine the current ratio and working capital.
2. Beyond the information provided in your answers to (1), what does the composition of the current assets tell you about Stevenson’s liquidity?
3. What other information do you need to fully assess Stevenson’s liquidity?

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Cash $ 23,000 Accounts receivable 13,000 Inventory 45,000 Prepaid insurance 800 Land 80,000 Accounts payable 54,900 Salaries payable 1,200 Capital stock 100,000 Retained earnings 5,700