The current assets and current liabilities for Apple Inc. and HP, Inc., are as follows at the end of a recent fiscal period:

* These represent prepaid expense and other nonquick current assets.

a. Determine the quick ratio for both companies. Round to one decimal place.
b. Interpret the quick ratio difference between the two companies.

Transcribed Image Text:

Apple Inc. (in millions) HP, Inc. (in millions) Current assets: Cash and cash equivalents $ 25,913 $ 5,166 Short-term investments 40,388 Accounts receivable 5,113 6,062 5,046 $21,387 48,995 3,956 12,087 $131,339 Inventories Other current assets* Total current assets Current liabilities: Accounts payable $ 55,888 $14,816 Accrued and other current liabilities 60,978 $116,866 10,315 $25,131 Total current liabilities