Following are the current asset and current liability sections of the balance sheets for Freedom Incorporated at January 31, 2023 and2022 (in millions):Current AssetsCashAccounts receivableInventoriesTotal current assetsCurrent LiabilitiesNote payableAccounts payableother accrued liabilitiesTotal current liabilitiesReq AJanuary 31, January 31,20232022$969711$ 22$ 263$5$5524$ 14Required:a. Calculate the working capital and current ratio at each balance sheet date.b. Evaluate the firm's liquidity at each balance sheet date.c. Assume that the firm operated at a loss during the year ended January 31, 2023. How could cash have increased during the year?Req B and CWorking capitalCurrent ratioComplete this question by entering your answers in the tabs below.01/31/20234$ 11Calculate the working capital and current ratio at each balance sheet date.Note: Enter "Working capital" in millions of dollars (i.e., 10,000,000 should be entered as 10). Round your "Current ratio" to 2decimal places.01/31/2022< Req AShow less AReq B and C > Required:a. Calculate the working capital and current ratio at each balance sheet date.b. Evaluate the firm's liquidity at each balance sheet date.c. Assume that the firm operated at a loss during the year ended January 31, 2023. How could cash have increased during the year?Complete this question by entering your answers in the tabs below.Req AReq B and Cb.Evaluate the firm's liquidity at each balance sheet date.c. Assume that the firm operated at a loss during the year ended January 31, 2023. How could cash have increased during the year?b. Based on the working capital and current ratio measures, the firm has becomec. Changes in a firm's cash position and its profitability are not directly related under< Req AShow less AReq B and C >

Current ratio identifies the ability of the company to use its liquidity to pay off its short term…

Answered: Following are the current asset and…

Following are the current asset and current liability sections of the balance sheets for Freedom Incorporated at January 31, 2023 and 2022 (in millions):

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Pasta Corporation acquired 75% of Sauce Company on January 1, 2020 for $566,250 cash. The fair value of the other 25% ownership interest is estimated to be $188,750. ADDITIONAL INFORMATION: On the date of acquisition: * The Book Value of Sauce Company's net identifiable assets was $652,000. * Sauce's Company's Plant Assets were undervalued by $75,000 (remaining life was estimated to be 5 years). * Sauce's Company's Inventories were overvalued by $9,000 (all sold by year end). * New Goodwill was determined to be $37,000. At year-end, it was determined that the New Goodwill was impaired by $5,800. * For 2020, Sauce reported net income of $146,500 and paid dividends of $26,000. Assume that Pasta Company uses the fully adjusted equity method to account for its Investment in Sauce.
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LuxAll Inc., includes the following selected accounts in its general ledger at December 31, attached in ss below thanks ng wp
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