The following items, in alphabetical order, are available from the records of Walker Corporation as of December 31, 2012 and 2011:

                                        December 31, 2012             December 31, 2011

Accounts payable.......................$ 8,400..........................$ 5,200

Accounts receivable.....................27,830...........................35,770

Cash.......................................20,200...........................19,450

Cleaning supplies............................450...............................700

Interest payable.................................0............................1,200

Inventory..................................24,600..........................26,200

Marketable securities.....................6,250...........................5,020

Note payable, due in six months ............0..........................12,000

Prepaid rent................................3,600...........................4,800

Taxes payable..............................1,450...........................1,230

Wages payable............................1,200...........................1,600

Required

1. Calculate the following as of December 31, 2012, and December 31, 2011:

a. Working capital

b. Current ratio

2. On the basis of your answers to (1), comment on the company's relative liquidity at the beginning and end of the year. Explain the change in the company's liquidity from the beginning to the end of 2012.