Accounts on the balance sheet are classified or grouped into related categories. These classifications provide subtotals which can be used to compute ratios and do comparisons. For example any portion of a long-term liability that is due within the next year is classified as a current liability. This affects the company’s liquidity ratios and working capital.

INSTRUCTIONS 

Use PETsMART’s balance sheet in Appendix F to answer these questions.

1. What is the working capital as of February 1, 2004?

2. Obtain PETsMART’s most recent annual report from the Internet or library. What is the working capital as of the balance sheet date?

3. Describe any change from the fiscal year ending February 1, 2004.