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The Gap Inc. (GPS) operates specialty retail stores under such brand names as GAP, Old Navy, and Banana Republic. The following asset and liability data
The Gap Inc. (GPS) operates specialty retail stores under such brand names as GAP, Old Navy, and Banana Republic. The following asset and liability data (in millions) were adapted from recent financial statements. Current assets Year 2 Year 1 Cash 435 850 Account receivable 287 146 Inventory 553 405 Prepaid and other current assets 122 121 Total current assets 1397 1522 Total current liabilities 843 858 1. Compute quick assets for Years 2 and 1. 2. Compute the quick ratio for Years 2 and 1. Round to two decimal places. 3. Analyze and assess any changes in liquidity for Years 2 and 1
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