Question: Working Capital and Current Ratio The following data (in thousands) were taken from recent financial statements of Starbucka Corporation: Year 2 Year 1 Current assets
Working Capital and Current Ratio The following data (in thousands) were taken from recent financial statements of Starbucka Corporation: Year 2 Year 1 Current assets $201,952 $146,321 Current liabilities 52,729 39,019 a. Compute the working capital and the current ratio for Year 2 and Year 1. Enter working capital amounts in thousands of dollars. Round "current ratio answers to two decimal places Year 2 Year 1 Working capital Current ratio in b. What conclusions concerning the company's ability to meet its financial obligations can you draw from part (3)? Starbucks working capital from Year 1 to Year 2 by 5 Starbucks's current ratio Year 2. The changes in working capital and current ratio indicate that short-term creditors concerned about receiving payment from Starbucks
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