The Gap Inc. (GPS) operates specialty retail stores under such brand names as GAP, Old Navy, and Banana Republic. 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.

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Year 2 Year 1 Current assets: Cash $1,783 $1,783 Accounts receivable 282 335 Inventory Prepaid and other current assets Total current assets 1,997 1,830 506 $4,568 $2,461 367 $4,315 $2,453 Total current liabilities