Following are the current asset and current liability sections of the balance sheets for Freedom Inc. at January 31, 2023 and 2022 (in millions):

Required:
a. Calculate the working capital and current ratio at each balance sheet date. Round your current ratio answers to one decimal place.
b. Evaluate the firm’s liquidity at each balance sheet date.
c. Assume that the firm operated at a loss during the year ended January 31, 2023. How could cash have increased during the year?

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Current Assets Cash.. Accounts receivable. Inventories.. Total current assets Current Liabilities Note payable..... Accounts payable.. Other accrued January January 31, 2023 31, 2022 $30 20 40 $90 $20 30 10 $10 25 45 $80 $20 10 10