Use Foot Locker, Inc.€™s balance sheet and other information provided on the next page to answer the following questions.
a. Compute Foot Locker€™s working capital in 2013 and 2012.
b. Compute Foot Locker€™s current ratio in 2013 and 2012.
c. Comment on what the working capital and current ratio indicate about Foot Locker in 2013 and 2012.
d. Compute Foot Locker€™s debt- to- equity ratio. Comment on what the debt- to- equity ratio indicates about Foot Locker in 2013 and 2012.
e. Use DuPont analysis to decompose Foot Locker€™s return on equity into return on assets and financial leverage. Foot Locker€™s net income in 2013 was $ 429 million. Comment on the effect of financial leverage on return on equity.

Foot Locker, Inc. CONSOLIDATED BALANCE SHEETS 2013 2012 in millionsi ASSETS Current Assets Cash and cash equivalents 858 880 Short-term investments 1,167 268 2.363 490 Merchandise inventories Other current assets Total Current Assets Property and Equipment, Net Deferred Taxes Goodwill Other Intangible Assets, Net Other Assets Total Assets IABIUTIES AND SHAREHOLDERS EQUITY Current Liabilities 1,220 263 2,350 590 241 163 67 76 145 40 72 $3,487 $3367 263 299 338 Accounts payable Accrued and other liabilities 360 Current portion of capital lease obligations Total Current Liabilities Long-Term Debt and Obligations under Capital Leases Other Liabilities Total Liabilities Shareholders Equity Total Liablities and Shareholders' Equity 636 133 221 990 136 991 2496 2372 3487 $3.367