Use the foregoing Lowe's Companies data.

1. Compute Lowe's current ratio at December 31, 20X4 and 20X3.

2. Did Lowe's current ratio improve, deteriorate, or hold steady during 2006?

Lowe's Companies, the home-improvement-store chain, reported these summarized figures (in billions):

Net sales LOWE'S COMPANIES Income Statement (Adapted) Year Ended January 30, 20X4 Cost of goods sold Interest expense All other expenses Net income $30.8 21.2 .2 7.5 $ 1.9