Selected financial data regarding current assets and current liabilities for ACME Corporation and Wayne Enterprises, are as follows:

Required:
1. Calculate the current ratio for ACME Corporation and Wayne Enterprises. Which company has the better ratio?
2. Calculate the acid-test (quick) ratio for ACME Corporation and Wayne Enterprises. Which company has the better ratio?
3. How would the purchase of additional inventory on credit affect the current ratio? How would it affect the acid-test ratio?

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Oceanic Airlines $ in millions) Current assets: Ferris Air Cash and cash equivalents Current investments Net receivables Inventory Other current assets $1,113 1,857 578 469 210 2,791 958 2,156 1,023 1,344 Total current assets $4.227 8,272 Current liabilities: Current debt Accounts payable and accrued liabilities Other current liabilities $271 2,209 2,170 $1,627 5,686 5,957 $4,650 $13270 Total current liabilities