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Working Capital and Current Ratio The following data were taken from recent financial statements of Starlight Corporation: Current assets Current liabilities Year 2 Year

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Working Capital and Current Ratio The following data were taken from recent financial statements of Starlight Corporation: Current assets Current liabilities Year 2 Year 1 $ 93,663 $ 68,062 24,140 17,864 a. Compute the working capital and the current ratio for Year 2 and Year 1. Round the current ratio answers to two decimal places. Use the minus sign to indicate a negative working capital. Working capital Year 2 Year 1 Current ratio b. What conclusions concerning the company's ability to meet its financial obligations can you draw from part (a)? Starlight's working capital ( from Year 1 to Year 2 by $ working capital and current ratio indicate that short-term creditors U Starlight's current ratio ( in Year 2. The changes in concerned about receiving payment from Starlight.

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