Baldwin Corp. reported the following current accounts at the end of two recent years:

Required
1. Compute Baldwin's current ratio at the end of each of the two years.
2. How has Baldwin's liquidity changed at the end of 2017 compared to the end of 2016?
3. Comment on the relative composition of Baldwin's current assets at the end of 2017 compared to the end of 2016.

Transcribed Image Text:

December 31, 2017 $3,000 15,000 12,000 12,000 2,000 6,000 December 31, 2016 Accounts receivable Inventory Accounts payable Wages payable Notes payable 6,000 10,000 8,000 7,000 1,000 4,000