Selected information from the comparative balance sheets for Sears Holdings Corporation are presented here. Although some accounts are not listed, all of the current assets and current liabilities are given. (LO 3, 4,9)
|
|
At January 28, 2006 |
At January 26, 2005 |
|
(dollars in millions) |
||
|
Cash |
$4440 |
$3435 |
|
Accounts receivable |
811 |
646 |
|
Inventory |
9068 |
3281 |
|
Other current assets |
888 |
179 |
|
Property, plant, and equipment |
9823 |
315 |
|
Accounts payable |
3458 |
927 |
|
Other current liabilities |
6892 |
1154 |
|
Long-term debt |
8612 |
2101 |
|
Total shareholder” equity |
11611 |
4469 |
Required
a. Provide the following values at the end of each given financial year.
1. Current assets
2. Current liabilities
3. Current ratio
b. Based on your answers in part a, discuss the change in liquidity between the two years.