The following are the current assets and current liabilities sections of the balance sheets of Freedom, Inc., as of January 31, 2017 and 2016 (in millions):

	January 31, 2017					January 31, 2016
Current assets
Money		ps	12				ps	9
accounts receivable			5					8
inventories			7					11
Total current assets		ps	24				ps	28
current liabilities
Pay		ps	6				ps	6
Accounts payable			5					2
Other accrued liabilities			3					3
Total current liabilities		ps	14				ps	11

Required:

a. Calculate the working capital and the current ratio at each balance sheet date.

b. Evaluate the company's liquidity at each balance sheet date.

C. Assume the business operated at a loss for the year ending January 31, 2017. How might cash have increased during the year?

	Changes in a company's cash position and its profitability are not directly related under the accrual (or accrual) basis of accounting.
	Changes in a company's cash position and its profitability are not directly related under the cash basis of accounting.