The Gap, Inc. reports its financial results for 52-week fiscal periods ending on a Saturday around the end of January each year. The following information (in US$ millions) was included in recent annual reports:

Instructions
(a) Comment on the changes in The Gap's liquidity over the five- year period. Which measure seems to give a better indication of its liquidity: working capital or the current ratio? Suggest a reason for the changes in The Gap's liquidity during the period.
(b) Do you believe that The Gap's creditors should be concerned about its liquidity?

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Working capital Current ratio Acid-test ratio Cash and cash equivalents Current liabilities Jan. 31, 2015 2,083 1.93:1 .09:1 1,515 2,234 Feb. 1, 2014 1,985 .81:1 1.02: 1,510 2,445 Feb. 2, 2013 1,788 1.76:1 1.01:1 1,460 2,344 Jan. 28, 2012 $2,181 2.02:1 0.89:1 $1,885 $2,128 Jan. 29, 2011 $1,831 1.87:1 0.79:1 $1,561 $2,095