The Gap Inc. operates over 3,000 specialty retail stores under such brand names as GAP, Old Navy, and banana republic. The following asset and liability data (in millions) were adapted from recent financial statements.

1. Compute working capital for Years 2 and 1.
2. Compute the current ratio for Years 2 and 1. Round to one decimal place.
3. Compute the quick ratio for Years 2 and 1. Round to one decimal place.
4. Analyze and assess any changes in liquidity for Years 2 and1.

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Year 2 Year 1 Current assets Cash Accounts receivable Inventory Prepaid and other current assets S1,885 297 1,615 512 $4,309 $2,128 $1,661 205 1,620 440 $3,926 $2,095 Total current assets Total current liabilities