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Airline Accessories has the following current assets: cash, $94 million; receivables, $86 million; inventory, $174 million; and other current assets, $10 million. Airline Accessories has
Airline Accessories has the following current assets: cash, $94 million; receivables, $86 million; inventory, $174 million; and other current assets, $10 million. Airline Accessories has the following liabilities: accounts payable, $82 million; current portion of long-term debt, $27 million, and long-term debt, $15 million. Based on these amounts, calculate the current ratio and the acid-test ratio for Airline Accessories. (Enter your answers in millions, not in dollars. For example, $5,500,000 should be entered as 5.5.) Answer is complete but not entirely correct. Current Ratio Current assets S 3.34 Current liabilities S 364 109 Acid-Test Ratio Quick assets S 190 X Current liabilities s 109 1.74
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