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Hibbett Sports, Inc. (HIBB) is a sporting goods retailer with locations primarily in the Southeast, Southwest, and Midwest United States, Diek's Sporting Goods, Inc. (DKS)

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Hibbett Sports, Inc. (HIBB) is a sporting goods retailer with locations primarily in the Southeast, Southwest, and Midwest United States, Diek's Sporting Goods, Inc. (DKS) is a leading full-line retailer of sporting equipment and apparel. The current assets and current liabilites of both companies are provided as follows trom recent financial statements (in thousands): a. What do the "gift cards" listed under each compary's current liabilities represent? b. Compute the current ratio for Hibbett Sports and Dick's Sporting Goods. Round your answers to one decimal place. Hibbett: Dick's Sporting Goods: c.wCompute the quick rotio for Hibbett Sports and Dick's Sporting Goods. Round your answers to one decimal place. Hibbett: Dick's Sporting Goods: a. What do the "gift cards" listed under each company's current liabilities represent? b. Compute the current ratio for Hibbett Sports and Dick's Sporting Goods. Round your answers to one decimal place. Hibbett: Dick's Sporting Goods: c. Compute the quick ratio for Hibbett Sports and Dick's Sporting Goods. Round your answers to one decimal place. Hibbett Dick's Sporting Goods: d. Compare the two companies using the computations in (b) and (c). Hibbett appears to have a stronger liquidity position than does Dick's Sporting Goods. Dick's Sporting Goods' appears to have a stronger liquidity position than does Hibbett. Hibbett has a higher current ratio, but Dick's sporting Goods has a better quick rato. it is difficult to say much about the llquidity position. a. What do the "gift cards" listed under each company's current liabinties represent? The gift cards represent unearned revenue (a lability). The gith cards hwe been pre-purchased and represant a form of eash to the teidier The oift cards represent revenue (an income). The gitr cards have been pre-purchased and represent a form of cass to the hoief. they are non The gift cards represent deferred revense fan asset. The gift cards have been pre-purchased and reoresent a form of cauh to the holdes

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