Calculate working capital, current ratio, and acid$-$test ratio, and comment on liquidity.

E$4\mathrm{.}17($LO $4)$ AN Gildan Activewear Inc. is a leading manufacturer and marketer of family apparel, including T$-$shirts, fleece, sport shirts, socks, and shapewear. Its brands include American Apparel and Gold Toe. The following data $($in thousands of U$.$S$.$ dollars$)$ were taken from Gildan's financial statements

December $29,2019$ December $30,2018$ December $31,2017$

Cash and cash equivalents

$64,126$

$46,657$

$ $52,795$

Trade accounts receivable

$320,931$

$317,159$

$243,365$

Income taxes receivable

$1,689$

$3,891$

Inventories

$1,052,052$

$940,029$

$945,738$

Prepaid expenses, deposits, and other current assets

$77,064$

$77,377$

$62,092$

Current assets

$1,514,173$

$1,382,911$

$1,307,881$

Current liabilities

$422,404$

$346,985$

$258,476$

Instructions

a$.$ Calculate the working capital, current ratio, and acid$-$test ratio for each year.

b$.$ Discuss Gildan's liquidity on December $29,2019,$ compared with the two$$previous$$years$.$