The following statement of financial position accounts and amounts were for Classic Ltd. on October 31:

Required:
a. Prepare a classified comparative statement of financial position for Classic Ltd. as at October 31, 2016.
b. Calculate the amount of Classic€™s working capital (current assets minus current liabilities) at the end of its fiscal years 2016 and 2015. Has the company€™s working capital position improved or deteriorated during this period?
c. Calculate Classic€™s current ratios at the end of its fiscal years 2016 and 2015. Has its current ratio improved or deteriorated during this period?
d. Calculate Classic€™s quick ratios at the end of its fiscal years 2016 and 2015. Has the company€™s quick ratio improved or deteriorated during this period?
e. Based on the results from parts €œb,€ €œc,€ and €œd,€ do you think Classic€™s overall liquidity position improved or deteriorated during this period?
f. How might Classic evaluate whether its overall liquidity is adequate?

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2016 2015 Equipment Bank loan payable (long-term) Prepaid expenses Accumulated depreciation, equipment Income taxes payable Inventory Wages payable Accounts receivable Unearned revenue Retained earnings Common shares Cash Accounts payable $350,000 322,000 2,800 123,200 19,600 315,000 36,400 64,400 67,200 84,000 70,000 67,200 77,000 $343,000 336,000 4,200 117,600 16,800 322,000 33,600 51,800 56,000 72,800 70,000 50,400 68,600