The following items, in alphabetical order, are available from the records of Quinn Corporation as of December 31, 2010 and 2009:

Required
1. Calculate the following as of December 31, 2010, and December 31, 2009:
a. Working capital
b. Current ratio
2. On the basis of your answers to (1), comment on the company€™s relative liquidity at the beginning and end of the year. Explain the change in the company€™s liquidity from the beginning to the end of2010.

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December 31, 2010 December 31, 2009 Accounts payable Accounts receivable $10,500 16,500 12,750 $6,500 26,000 11,800 Interest receivable Note receivable, due 12/31/2012 Office supplies Prepaid insurance Salaries payable Taxes payable 12,000 12,000 1,100 250 1,800 10,000 5.900