Gildan Activewear Inc. is a leading manufacturer and marketer of family apparel, including T-shirts, fleece, sport shirts, socks, and shapewear. Its brands include American Apparel and Gold Toe. The following data (in thousands of U.S. dollars) were taken from Gildan?s financial statements:

Instructions

a. Calculate the working capital, current ratio, and acid-test ratio for each year.

b. Discuss Gildan?s liquidity on December 31, 2017, compared with the two previous years.

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December 31, 2017 $ 52,795 243,365 945,738 3,891 62,092 January 1, 2017 $ 38,197 277,733 954,876 January 3, 2016 $ 50,675 306,132 851,033 Cash and cash equivalents Trade accounts receivable Inventories Income taxes receivable Prepaid expenses, deposits and other current assets Current assets Current liabilities 69,719 45,774 1,253,614 233,221 1,307,881 258,476 1,340,525 235,928