The following balance sheet accounts and amounts were for Classic Ltd. on October 31:

Required:
a. Prepare a classified comparative balance sheet for Classic Ltd. as at October 31, 2011.
b. Calculate the amount of Classic's working capital (current assets minus current liabilities) at the end of its fiscal years 2011 and 2010. Has the company s working capital position improved or deteriorated during this period?
c. Calculate Classic's current ratios at the end of its fiscal years 2011 and 2010. Has its current ratio improved or deteriorated during this period?
d. Calculate Classic's quick ratios at the end of its fiscal years 2011 and 2010. Has the company's quick ratio improved or deteriorated during this period?
e. Based on the results from parts "b," "c," and "d," do you think Classic's overall liquidity position improved or deteriorated during this period?
f. How might Classic evaluate whether its overall liquidity is adequate?

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2011 2010 Capital assets Bank loan (long-term Prepaid expenses Accumulated amortization Tases payable Inventory Wages payable Accounts receivable Unearned revenue Retained earnings Common shares Cash Accounts payable S350,000 22,000 2,800 123,200 19,600 315,000 36,400 64.400 67,200 84,000 70,000 67.200 77,000 $343,000 336,000 4,200 117,600 16,800 322,000 33,600 51,800 56,000 72.800 70,000 50.400 68.600