Analysis of Liquidity The comparative income statement and balance sheet of Cowan Kitchen Counters, Inc. are shown. Cowan Kitchen Counters, Inc. Comparative Income Statement For Years Ended December 31, 20-2 and 20-1 20-2 20-1 $2,590,000 $2,160,000 1,870,000 1,630,000 $530,000 Net Sales (all on account) Cost of goods sold Gross profit Operating expenses Other expense (interest) Income tax expense $720,000 310,000 24,200 210,000 24,200 180,000 104,000 Net income $205,800 $191,800 Cowan Kitchen Counters, Inc. Comparative Balance Sheet December 31, 20-2 and 20-1 20-2 20-1 Cash Government notes $246,000 252,000 795,000 908,000 Accounts receivable (net) $499,800 252,000 910,000 986,000 150,000 107,000 388,000 Merchandise inventory Supplies and prepayments Land 48,000 107,000 388,000 Building (net) Office equipment (net) 14,000 14,000 Total assets $3,306,800 $2,758,000 Current liabilities (accounts payable) $895,000 $532,000 240,000 Bonds payable 220,000 Total liabilities $1,115,000 $772,000 Common stock ($10 par, 180,000 shares) $1,800,000 $1,800,000 391,800 Retained earnings 186,000 Total stockholders' equity $2,191,800 $1,986,000 Total liabilities and stockholders' equity $3,306,800 $2,758,000 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