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Question
For Garrison Corporation, the working capital at the end of the current year is $10,000 more than the working capital at the end of the preceding year, reported as follows:
| Year 2 | Year 1 | |
| Current assets: | ||
| Cash, marketable securities, and receivables | $ 80,000 | $ 84,000 |
| Inventories | 120,000 | 66,000 |
| Total current assets | $200,000 | $150,000 |
| Current liabilities | 100,000 | 60,000 |
| Working capital | $100,000 | $ 90,000 |
Has the current position of Garrison Corporation improved? Explain.
Answer
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