Following are the current asset and current liability sections of the balance sheets for Freedom Incorporated at January $31,2023$ and $2022($in millions$)$:

January $31,2023$ January $31,2022$

Current Assets

Cash $ $30$ $ $10$

Accounts receivable $2025$

Inventories $4045$

Total current assets $ $90$ $ $80$

Current Liabilities

Note payable $ $20$ $ $20$

Accounts payable $3010$

Other accrued liabilities $1010$

Total current liabilities $ $60$ $ $40$

Required:

Calculate the working capital and current ratio at each balance sheet date.

Evaluate the firm's liquidity at each balance sheet date.

Assume that the firm operated at a loss during the year ended January $31,2023.$ How could cash have increased during the year?