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 $82,500 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?

The current ratio would have(select one).

... Account Cash Accounts receivable Long-term investment in shares Boats Land Accounts payable Salaries payable Short-term notes payable Long-term notes payable Sales Cost of goods sold Insurance expense 2014 $42,000 69,500 125,500 101,000 166,500 82,500 167,000 188,000 157,500 67,500 130,000 28,000 2013 $46,500 69,500 71,500 112,500 161,500 67,500 139,000 153,500 141,000 49,000 55,500 33,000