The following items, in alphabetical order, are available from the records of Quinn Corporation as of December 31, 2017 and 2016:

Required
1. Calculate the following as of December 31, 2017, and December 31, 2016:
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 of 2017.

Transcribed Image Text:

December 31, 2017 December 31, 2016 $ 6,500 26,000 11,800 Accounts payable Accounts receivable Cash Interest receivable Note receivable, due 12/31/2019 Office supplies Prepaid insurance Salaries payable Taxes payable $10,500 16,500 12,750 200 12,000 900 400 1,800 10,000 12,000 1,100 250 800 5,800