Question: How do you solve this? MBA 3-7 Quick ratio Ob American Eagle Outfitters Inc. (AEO) operates specialty retail stores, selling clothing such as denim, sweaters,

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MBA 3-7 Quick ratio Ob American Eagle Outfitters Inc. (AEO) operates specialty retail stores, selling clothing such as denim, sweaters, t-shirts, and fleece outerwear that targets 15 to 25 year old men and women. that targets 15 to 25 year old men and women. The following asset and liability data (in millions) were adapted from recent financial statements. Year 2 Year 1 Current assets: Cash $ 411 $ 429 Accounts receivable 68 74 Inventory 279 291 Prepaid and other current assets 133 134 Total current assets $ 891 $ 928 Total current liabilities $ 459 $ 415 1. Compute quick assets for Years 2 and 1. 2. Compute the quick ratio for Years 2 and 1. Round to two decimal places. 3. Analyze and assess any changes in liquidity for Years 2 and 1
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