Following are the current asset and current liability sections of the balance sheets for Freedom Incorporated...

 

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Following are the current asset and current liability sections of the balance sheets for Freedom Incorporated at January 31, 2023 and 2022 (in millions): January 31, January 31, 2023 2022 Current Assets Cash $ 30 $ 10 Accounts receivable 20 25 Inventories 40 45 Total current assets $ 90 $ 80 Current Liabilities Note payable $ 20 $ 20 Accounts payable 30 10 Other accrued liabilities 10 10 Total current liabilities $ 60 $ 40 Required: a. Calculate the working capital and current ratio at each balance sheet date. 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? Complete this question by entering your answers in the tabs below. Req A Req B and C Show less A Calculate the working capital and current ratio at each balance sheet date. Note: Enter "Working capital" in millions of dollars (i.e., 10,000,000 should be entered as 10). Round your "Current ratio" to 1 decimal place. (e.g., 32.1) Working capital Current ratio 01/31/2023 01/31/2022 Req A Req B and C > Following are the current asset and current liability sections of the balance sheets for Freedom Incorporated at January 31, 2023 and 2022 (in millions): January 31, January 31, 2023 2022 Current Assets Cash $ 30 $ 10 Accounts receivable 20 25 Inventories 40 45 Total current assets $ 90 $ 80 Current Liabilities Note payable $ 20 $ 20 Accounts payable 30 10 Other accrued liabilities 10 10 Total current liabilities $ 60 $ 40 Required: a. Calculate the working capital and current ratio at each balance sheet date. 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? Complete this question by entering your answers in the tabs below. Req A Req B and C Show less A Calculate the working capital and current ratio at each balance sheet date. Note: Enter "Working capital" in millions of dollars (i.e., 10,000,000 should be entered as 10). Round your "Current ratio" to 1 decimal place. (e.g., 32.1) Working capital Current ratio 01/31/2023 01/31/2022 Req A Req B and C >