EX 4-22 Working capital and current ratio
The following data (in thousands) were taken from recent financial statements of Starbucks Corporation:
|
Sept. 27, 2009 |
Sept. 28, 2008 |
|
|
Current assets |
$2,035,800 |
$1,748,000 |
|
Current liabilities |
1,581,000 |
2,189,700 |
a. Compute the working capital and the current ratio as of September 27, 2009, and September 28, 2008. Round to two decimal places.
b. What conclusions concerning the company’s ability to meet its financial obligations can you draw from part (a)?