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Problem - Current assets and current liabilities for Brimstone Company follow:
2018
2019
Current assets
$1,586,250
$1,210,000
Current liabilities
705,000
550,000
Required -
a. Find the working capital and current ratio for 2019 and 2018.
b. Does the change in the current ratio from 2018 to 2019 indicate a favorable or an unfavorable change?
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