The Foot Locker, Inc. (FL) and Dick’s Sporting Goods, Inc. (DKS) are two retail chains. The current assets and current liabilities from recent balance sheets for both companies are as follows (in millions):

a. Compute the working capital for Year 2 and Year 1 for each company.
b. Compute the current ratio for Year 2 and Year 1 for each company. Round to one decimal place.
c. If you were a supplier to these two companies, in which company would you feel most confident about receiving payment?
d. For each company, did liquidity improve or decline between the two years?

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Foot Locker Dick's Year 2 Year 1 Year 2 Year 1 Current assets $2,518 $2,551 $2,122 $2,006 Current liabilities 764 616 1,505 1,425