The following historical information is from Assisi Community Markets.

Calculate the working capital and current ratio for each year. What observations do you make, and what actions might the owner consider taking?

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Year 1 Year 2 Year 3 Year 4 Year 5 Cash $42,000 37,500 26,800 22,100 15,700 Current Assets Accounts Receivable $12,500 16,800 22,900 28,000 29,500 Inventory $ 6,200 7,600 10,300 15,400 16,700 Current Liabilities Accounts Wages Payable Payable $12,500 $3,200 14,600 3,700 4,500 6,000 8,200 19,800 20,600 22,900