Sears Holdings Corporation (SHLD) is one of the largest mall-based retailers in the United States. The following year-end data were taken from a recent Sears balance sheet (in millions): December 31 Year 2 Year 1 Current assets $6,045 $5,863 Current liabilities 5,438 5,595 a. Compute the working capital and the current ratio as of December 31, Year 1 and Year 2. (Round your answers to two decimal places.) 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. If a company has a current ratio less than 1 and a working capital decline, what does it indicate?
Sears Holdings Corporation (SHLD) is one of the largest mall-based retailers in the United States. The following year-end data were taken from a recent Sears balance sheet (in millions): December 31 Year 2 Year 1 Current assets $6,045 $5,863 Current liabilities 5,438 5,595 a. Compute the working capital and the current ratio as of December 31, Year 1 and Year 2. (Round your answers to two decimal places.) 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. If a company has a current ratio less than 1 and a working capital decline, what does it indicate?
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Question
Sears Holdings Corporation (SHLD) is one of the largest mall-based retailers in the United States. The following year-end data were taken from a recent Sears balance sheet (in millions):
| December 31 | ||
|---|---|---|
| Year 2 | Year 1 | |
| Current assets | $6,045 | $5,863 |
| Current liabilities | 5,438 | 5,595 |
a. Compute the working capital and the current ratio as of December 31, Year 1 and Year 2. (Round your answers to two decimal places.)
| 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. If a company has a current ratio less than 1 and a working capital decline, what does it indicate?
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