Problem 5.3 A friend who owns a Sydney restaurant has presented the following information to you and asked you to comment on the restaurant's performance in 20X2. Year-end Year-end Current assets 20X1 20X2 Cash $10,800 $14,300 Accounts 27,000 26,000 receivable Marketable 7,500 7,500 securities Inventories 10,400 12,000 Prepaid expenses 1,500 1,600 Current liabilities Accounts payable $8,400 $12,200 Accrued expenses 3,600 5,600 Current tax payable 4,500 3,400 Deposits and credit balances 700 400 Current portion of loan 10,700 9,500 Required a For both years, calculate the working capital. b For both years, calculate the current asset ratio. c For both years, calculate the acid test ratio. d Comment on whether the restaurant is becoming more or less liquid.