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Working capital and current ratio Current assets and current liabilities for Brimstone Company follow: 20Y4 20Y3 Current assets $1,529,500 $1,166,000 Current liabilities 665,000 530,000 a. Determine the working capital and current ratio for 20Y4 and 20Y3. Round Current ratio to 2 decimal places. 20Y4 20Y3 Working capital $ 2.3 X 2.2 X Current ratio 864,500 X 636,000 X b. Does the change in the current ratio from 20Y3 to 20Y4 indicate a favorable or an unfavorable change? Favorable v Feedback Check My Work a. The current ratio (current assets/current liabilities), indicates whether a company has enough short-term assets to cover its short-term debt. b. The ideal current ratio is 2: 1. Anything below 1 indicates negative working capital