Below are selected financial information from GoPro Inc., the manufacturer of mountable and wearable cameras and accessories.

GoPro, Inc.

Balance Sheet

FY 2018 FY 2017

Cash & Cash Equivalent $152,095 $202,504

Marketable Securities 45,417 44,886

Accounts Receivable, net 129,216 112,935

Inventory 116,458 150,551

Prepaid Expenses 30,887 62,811

Total Current Assets $474,073 $573,687

Accounts Payable $148,478 $138,257

Accrued Liabilities 135,892 213,030

Unearned Revenue 15,129 19,244

Total Current Liabilities $299,499 $370,531

A. In two paragraphs please define what the Acid-Test ratio is, and explain its importance in the analysis of a company's liquidity position. Then calculate the Acid-Test ratio for FY 2018 and FY 2017.

Formula is: Cash & Cash Equivalent + Marketable Securities + Net Receivable

Current Liabilities

B. In two paragraphs please define what the Working Capital is, and explain its importance in the analysis of a company's liquidity position. Then calculate the ratio for FY 2018 and FY 2017.

Formula: Current Assets - Current Liabilities