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Working Capital and Short-Term Liquidity Ratios Favor Company has a current ratio of 1.45 on December 31. On that date the companys current assets are

Working Capital and Short-Term Liquidity Ratios Favor Company has a current ratio of 1.45 on December 31. On that date the companys current assets are as follows: Cash and cash equivalents $63,000 Short-term investments 195,750 Accounts receivable (net) 281,250 Inventory 401,625 Prepaid expenses 25,875 Current assets $967,500 Favor Companys current liabilities at the beginning of the year were $438,750 and during the year its operating activities provided a cash flow of $72,735. a. What are the firms

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