ST: Week 2 Choos X CengageNOWv2 | Assignm X CengageNOWv2 | Online te X a google - Search XC Analyze and compare Alph x+ cengagenow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=saved&takeAssignmentSession Locator-assignment-take&i... eBook Analyze Sears Holding Corporation 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 Current assets Current liabilities $6,045 Year 1 $5,863 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 $ X $ X < Current Ratio 1.11 1.05 b. If a company has a current ratio less than 1 and a working capital decline, what does it indicate? That the company's short-term debt-paying ability is under stress. Feedback Check My Work Working capital = current assets - current liabilities Current ratio = current assets + current liabilities Check My Work W Previous N ST: Week 2 Choos X CengageNOWv2 | Assignm X CengageNOWv2 | Online te X a google - Search XC Analyze and compare Alph x+ cengagenow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=saved&takeAssignmentSession Locator-assignment-take&i... eBook Analyze Sears Holding Corporation 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 Current assets Current liabilities $6,045 Year 1 $5,863 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 $ X $ X < Current Ratio 1.11 1.05 b. If a company has a current ratio less than 1 and a working capital decline, what does it indicate? That the company's short-term debt-paying ability is under stress. Feedback Check My Work Working capital = current assets - current liabilities Current ratio = current assets + current liabilities Check My Work W Previous N
ST: Week 2 Choos X CengageNOWv2 | Assignm X CengageNOWv2 | Online te X a google - Search XC Analyze and compare Alph x+ cengagenow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=saved&takeAssignmentSession Locator-assignment-take&i... eBook Analyze Sears Holding Corporation 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 Current assets Current liabilities $6,045 Year 1 $5,863 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 $ X $ X < Current Ratio 1.11 1.05 b. If a company has a current ratio less than 1 and a working capital decline, what does it indicate? That the company's short-term debt-paying ability is under stress. Feedback Check My Work Working capital = current assets - current liabilities Current ratio = current assets + current liabilities Check My Work W Previous N ST: Week 2 Choos X CengageNOWv2 | Assignm X CengageNOWv2 | Online te X a google - Search XC Analyze and compare Alph x+ cengagenow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=saved&takeAssignmentSession Locator-assignment-take&i... eBook Analyze Sears Holding Corporation 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 Current assets Current liabilities $6,045 Year 1 $5,863 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 $ X $ X < Current Ratio 1.11 1.05 b. If a company has a current ratio less than 1 and a working capital decline, what does it indicate? That the company's short-term debt-paying ability is under stress. Feedback Check My Work Working capital = current assets - current liabilities Current ratio = current assets + current liabilities Check My Work W Previous N
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Transcribed Image Text:ST: Week 2 Choos X CengageNOWv2 | Assignm X
CengageNOWv2 | Online te X
a google - Search
XC Analyze and compare Alph x+
cengagenow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=saved&takeAssignmentSession Locator-assignment-take&i...
eBook
Analyze Sears Holding Corporation
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
Current assets
Current liabilities
$6,045
Year 1
$5,863
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
$
X $
X
<
Current Ratio
1.11
1.05
b. If a company has a current ratio less than 1 and a working capital decline, what does it indicate?
That the company's short-term debt-paying ability is under stress.
Feedback
Check My Work
Working capital = current assets - current liabilities
Current ratio = current assets + current liabilities
Check My Work
W
Previous
N
Transcribed Image Text:ST: Week 2 Choos X CengageNOWv2 | Assignm X
CengageNOWv2 | Online te X
a google - Search
XC Analyze and compare Alph x+
cengagenow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=saved&takeAssignmentSession Locator-assignment-take&i...
eBook
Analyze Sears Holding Corporation
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
Current assets
Current liabilities
$6,045
Year 1
$5,863
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
$
X $
X
<
Current Ratio
1.11
1.05
b. If a company has a current ratio less than 1 and a working capital decline, what does it indicate?
That the company's short-term debt-paying ability is under stress.
Feedback
Check My Work
Working capital = current assets - current liabilities
Current ratio = current assets + current liabilities
Check My Work
W
Previous
N
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