Abercrombie & Fitch Co. (ANF) and The Gap, Inc. (GPS) are two U.S. apparel retailers. The current assets and current liabilities for each company from recent balance sheets are as follows (in thousands):

a. Compute the working capital for each company.
b. Compute the current ratio for each company. Round to one decimal place.
c. Compute the quick ratio for each company. Round to one decimal place.
d. Which company appears to have the greater short-term liquidity? Why?

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Abercrombie The Gap & Fitch Current assets: $ 547,189 Cash . $1,783,000 Accounts receivable 93,384 399,795 Inventories.. 1,830,000 Other current assets 98,932 $1,139,300 702,000 $4,315,000 Total current assets. Current liabilities: $ 187,017 Accounts payable.... $1,243,000 1,210,000 $2,453,000 Other current liabilities 298,983 Total current liabilities. $ 486,000