Quick ratio OBJ. 6 The current assets and current liabilities for Apple Inc. and Dell, Inc., are as follows at the end of a recent fiscal period:

Apple Inc.

(in millions)

Dell, Inc.

(in millions)

Current assets:

Cash and cash equivalents $10,746 $12,569 Short-term investments 18,383 208 Accounts receivable 21,275 9,842 Inventories 791 1,382 Other current assets* 6,458 3,967 Total current assets $57,653 $27,968 Current liabilities:

Accounts payable $32,589 $15,223 Accrued and other current liabilities 5,953 8,216 Total current liabilities $38,542 $23,439

a. Determine the quick ratio for both companies. (Round to one decimal place.)

b. Interpret the quick ratio difference between the two companies.
Problems: Series A