The balance sheet of Stevenson Inc. includes the following items:

Required
1. Determine the current ratio and working capital.
2. Beyond the information provided in your answers to (1), what does the composition of the current assets tell you about Stevenson€™s liquidity?
3. What other information do you need to fully assess Stevenson€™sliquidity?

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Cash Accounts receivable Inventory Prepaid insurance Land $ 23,000 45,000 80,000 Accounts payable Salaries payable Capital stock Retained earnings $54,900 1,200 100,000 5,700 000 cao emings 800