The following data were taken from the balance sheet of Tiger Shapes Company:

a. Determine for each year
(1) The working capital,
(2) The current ratio,
(3) The quick ratio.
b. What conclusions can be drawn from these data as to the company’s ability to meet its currently maturingdebts?

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Dec. 31, 20Y9 Dec. 31, 20Y8 Cash Temporary investments Accounts and notes receivable (net) Inventories Prepaid expenses 100,000 150,000 400,000 525,000 25,000 $1,200,000 S 425,000 75,000 500,000 80,000 40,000 360,000 380,000 20,000 880,000 340,000 60,000 Total current assets Accounts and notes payable (short-term) Accrued liabilities Total current liabilities $ 400,000