Working capital and current ratio OBJ. 7 The following data (in thousands) were taken from recent financial statements of Under Armour, Inc.:

December 31 Year 2 Year 1 Current assets $689,663 $558,850 Current liabilities 183,607 149,147

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

b. What conclusions concerning the company’s ability to meet its financial obligations can you draw from part (a)?