Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac

Exercise 8

Working capital and current ratio
The following data (in thousands) were taken from recent financial statements of Under Armour, Inc.:

a. Compute the working capital and the current ratio as of December 31, Year 2 and Year 1. Round to two decimal places.
b. What conclusions concerning the company's ability to meet its financial obligations can you draw from part (a)