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.
c. Compute the quick ratio for each company.
d. Which company appears to have the greater short-term liquidity? Why?

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Current assets: Cash Accounts receivable Inventories.... Other current assets Total current assets... Current liabilities: Accounts payable... Other current liabilities Total current liabilities. Abercrombie & Fitch $ 723,135 73,112 437,879 101,824 $1,335,950 $ 226,878 332,039 $ 558,917 The Gap $1,364,000 290,000 2,156,000 706,000 $4,516,000 $1,174,000 2,035,000 $3,209,000