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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Gamestop Corporation has over 6,000 retail stores worldwide and sells new and used video games. The following asset and liability data (in millions) were adapted from recent financial statements:Year 1 Year 2
Current assets Cash $ 655 $ 711
Accounts receivable 109 94
Inventory 1,137 1,258
Prepaid and other current assets 96 92
Total current assets $1,997 $2,155
Total current liabilities $1,634 $1,748
In your first discussion post the following computations showing all calculations and response to question should be indicated:
1. Compute working capital for Years 2 and 1.
2. Compute the current ratio for Years 2 and 1. Round to one decimal place.
3. Compute the quick ratio for Years 2 and 1. Round to one decimal place.
4. Analyze and assess any changes in liquidity for Years 2 and 1. 5. Comment on any competitive pressures that you think GameStop may be experiencing.
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