Sears Holdings Corporation is one of the largest mall-based retailers in the United States. The following year-end data were taken from a recent Sears balance sheet (in millions):
                                                                      December 31
                                                                 Year 2                Year 1
Current assets                                          $5,863                 $8,959
Current liabilities                                       6,076                    8,185

A. Compute the working capital and the current ratio as of December 31, Year 1 and Year 2. (Round to two decimal places.)

B. What conclusions concerning the company’s ability to meet its short-term obligations can you draw from part (A)?