Question
Assess the liquidity position of three companies based on their current ratios: Company Current Assets (in millions) Current Liabilities (in millions) Current Ratio Apple $60,000
Assess the liquidity position of three companies based on their current ratios:
Company | Current Assets (in millions) | Current Liabilities (in millions) | Current Ratio |
Apple | $60,000 | $30,000 | ? |
Microsoft | $40,000 | $20,000 | ? |
Exxon Mobil | $35,000 | $25,000 | ? |
Requirements:
- Calculate the current ratio for each company.
- Interpret the current ratio values and discuss the liquidity positions of the companies.
- Compare the current ratios and analyze the liquidity risk of each company.
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Financial Accounting
Authors: Walter T. Harrison, Charles T. Horngren
7th edition
0135012848, 978-0135012840
