Working Capital and Current Ratio The following data (in thousands) were taken from recent financial statements of Under Armour, Inc.: December 31 Year 2 Year 1 Current assets $ 151,166 $ 109,877 Current liabilities 38,367 28,392

a. Compute the working capital and the current ratio as of December 31,

Year 2 and Year 1. Enter

working capital amounts in thousands of dollars. Round "current ratio" answers to two decimal places.

December 31 Year 2 Year 1

Working capital $fill in the blank 1 $fill in the blank

2 Current ratio fill in the blank 3 fill in the blank 4

b. What conclusions concerning the company's ability to meet its financial obligations can you draw from part (a)?

Under Armours working capital by $fill in the blank 6 during Year 2. The current ratio in Year 2. Because Year 2's current ratio indicates a liquidity position, the short-term creditors concerned about receiving payment from Under Armour.