1. Analysis of Liquidity

   Based on the comparative income statement and balance sheet of Cowan Kitchen Counters, Inc., that follow:

   Cowan Kitchen Counters, Inc. Comparative Income Statement For Years Ended December 31, 20-2 and 20-1
   	20-2		20-1
   Net Sales (all on account)		$2,598,000		$2,165,100
   Cost of goods sold		1,874,900		1,620,600
   Gross profit		$723,100		$544,500
   Operating expenses		319,400		215,600
   Other expense (interest)		24,200		24,200
   Income tax expense		174,700		108,700
   Net income		$204,800		$196,000

   Cowan Kitchen Counters, Inc. Comparative Balance Sheet December 31, 20-2 and 20-1
   	20-2		20-1
   Cash		$258,600		$246,000
   Government notes		246,200		246,200
   Accounts receivable (net)		907,300		798,000
   Merchandise inventory		985,200		905,000
   Supplies and prepayments		145,000		46,600
   Land		106,000		106,000
   Building (net)		328,800		387,000
   Office equipment (net)		17,900		15,000
   Total assets		$2,995,000		$2,749,800
   Current liabilities (accounts payable)		$700,900		$534,000
   Bonds payable		220,000		240,000
   Total liabilities		$920,900		$774,000
   Common stock ($10 par, 180,000 shares)		$1,800,000		$1,800,000
   Retained earnings		274,100		175,800
   Total stockholders' equity		$2,074,100		$1,975,800
   Total liabilities and stockholders' equity		$2,995,000		$2,749,800

   Compute the following liquidity measures for 20-2 (round all calculations to two decimal places):

   a. Quick or acid-test ratio		to 1
   b. Current ratio		to 1
   c. Working capital		$