Following are the current asset and current liability sections of the balance sheets for Freedom Inc. at January 31, 2020 and 2019 (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, 2020. How could cash have increased during the year?

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January 31, 2020 January 31, 2019 Current Assets Cash . $ 6 $15 Accounts receivable 14 Inventories.... 18 24 Total current assets $42 $44 Current Liabilities $ 9 5. Note payable Accounts payable 15 Other accrued liabilities Total current liabilities $30 $20