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American Eagle Outfitters Inc. (AEO) operates specialty retail stores, selling clothing such as denim, sweaters, t-shirts, and fleece outerwear that targets 15-to-25-year-old men and women.

American Eagle Outfitters Inc. (AEO) operates specialty retail stores, selling clothing such as denim, sweaters, t-shirts, and fleece outerwear that targets 15-to-25-year-old men and women. The following asset and liability data (in millions) were adapted from recent financial statements.

Line Item DescriptionYear 2Year 1
Current assets:

    Cash$435$850
    Accounts receivable287146
    Inventory553405
    Prepaid and other current assets122121
    Total current assets$1,397$1,522
Total current liabilities$843$858

1.  Compute quick assets for Years 2 and 1.

Line Item DescriptionQuick Assets
Year 2$million
Year 1$million

2.  Compute the quick ratio for Years 2 and 1. Round your answers to two decimal places.

Line Item DescriptionQuick Ratio
Year 2
Year 1

3.  American Eagle Outfitters' quick assets

 by $ million during Year 2. Its quick ratio

 by  during Year 2. Overall, American Eagle Outfitters' liquidity position has

 from Year 1 to Year 2.

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