Working Capital and Current Ratio The following data (in thousands) were taken from recent financial statements of Starbucks Corporation: Year 1 Current assets $169,929 $123,396 Current liabilities 39,703 29,380 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 Working capital Current ratio Year 2 $ Year 1 b. What conclusions concerning the company's ability to meet its financial obligations can you draw from part (a)? Starbucks' working capital increased from Year 1 to Year 2 by $ working capital and current ratio indicate that short-term creditors should not be . Starbucks's current ratio increased concerned about receiving payment from Starbucks. in Year 2. The changes in

Working Captal and Current Ratio The following data (in thousands) were taken from recent financial statements of Starbucls Corporation: a. Compute the working capital and the current rotio for Year 2 and Year 1. Enter working capiral amounts in thousands of dollars. Alound "current ratie" answers te two decimal places. b. What conclusuons concerning the company's ability to meet its financial obllaations can you draw fram part (o)? Starbucks' working capital from Year 1 to Year 2 by 5 Starbucks's current ratio in Year 2 . The changes in working capital and current ratio indicate that short-term creditors concerned about receiving payment from starbucks