a) Calculate the working capital for 2014 and 2013. Please make sure your final answer(s) are accurate to the nearest whole number.

20142013Working capital

b) Is the change in working capital favourable or unfavourable?

The change in working capital is(select one).

c) Calculate the current ratio for 2014 and 2013. Please make sure your final answer(s) are accurate to 2 decimal places.

20142013Current ratio

d) Is the change in current ratio favourable or unfavourable?

The change in current ratio is(select one).

e) For the next two questions, assume that on the last day of 2014, the entire $71,500 balance in Accounts payable was paid off by cash. How would the working capital have changed?

The working capital would have(select one).

f) How would the current ratio have changed

Account Cash Accounts receivable Supplies Long-term investment in shares Accounts payable Short-term notes payable Unearned rent Long-term notes payable Interest earned Rent expense 2014 $44,500 78,000 34,000 68,000 71,500 93,000 62,000 99,000 23,500 124,500 2013 $94,000 92.000 49,000 71,000 48,000 87,500 46,500 155,000 14,500 45,500