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Working Capital and Current Ratio The following data (in thousands) were taken from recent financial statements of Starbucks Corporation: Current assets Current liabilities Year 2

Working Capital and Current Ratio The following data (in thousands) were taken from recent financial statements of Starbucks Corporation: Current assets Current liabilities Year 2 $119,911 35,582 Year 1 $86,892 26,331 a. Compute the working capital and the current ratio for Year 2 and Year 1. Enter working capital amounts in thousands of dollars. Round "current ratio answers to two decimal places. Year 2 Year 1 Working capital Current ratio b. What conclusions concerning the company's ability to meet its financial obligations can you draw from part (a)? Starbucks' working capital ( from Year 1 to Year 2 by $ capital and current ratio indicate that short-term creditors i Starbucks's current ratio concerned about receiving payment from Starbucks. in Year 2. The changes in working

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