Indicate whether each of the following statements about financial statement analysis is true or false. 1. Working capital is a measure of the amount of current assets a company would have left after paying its current liabilities. 2. If a transaction causes a company's working capital to increase, the transaction caused the company to become less liquid. 3. Interpretation of a company's current ratio can be difficult because it is an absolute amount. 4. The quick ratio is a more conservative variation of the current ratio.