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. The following asset and liability data (in millions) were adapted from recent financial statements.

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. MBA

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Year 2 Year 1 Current assets: Cash $ 379 $ 414 78 Accounts receivable 87 Inventory Prepaid and other current assets Total current assets 398 358 78 78 $ 968 $ 485 $ 902 $ 494 Total current liabilities