Calculating and interpreting short-term liquidity ratios. Data taken from the financial statements of Nike, a designer and manufacturer of athletic footwear and apparel, appear as follows (amounts in millions):

For the Year Year 11 Year 12 Year 13 Revenues $9,489 Cost of Goods Sold 5,785 Net Income 590 Cash Flow from Operations 657 On December 31 Year 10 Year 11 Year 12 Year 13 Cash and Marketable Securities Accounts Receivable Inventories Prepayments Total Current Assets Accounts Payable Bank Loans Other Current Liabilities ....

Total Current Liabilities . . .

a. Compute the current and quick ratios on May 3 1 of each year.

b. Compute the cash flow from operations to current liabilities ratio and the accounts receivable, inventory, and accounts payable turnover ratios for Year 1 1, Year 12. and Year 13.

c. How has the short-term liquidity risk of Nike changed during the three-year period?