Following are the current asset and current liability sections of the balance sheets for Freedom, Inc., at January 31, 2011 and 2010 (in millions):
January 31, 2011 January 31, 2010
- Current Assets
- Cash $ 9 $ 6
- Accounts receivable 7 10
- Inventories 7 11
- Total current assets $ 23 $ 27
Current Liabilities
- Note payable $ 5 $ 5
- Accounts payable 5 2
- Other accrued liabilities 2 2
- Total current liabilities $12 $ 9
Calculate the working capital and current ratio at each balance sheet date.
- 1/31/11 1/31/10
- Working capital $ $
- Current ratio