Required information [The following information applies to the questions displayed below.] Starbucks is a coffee companya big coffee company. During a 10-year period, the number of Starbucks locations in China grew from 24 to over 1,000. The following is adapted from Starbuckss annual report for the year ended October 2, 2016, and dollars are reported in millions. Accounts Payable $ 4,150 Accounts Receivable 770 Cash 2,130 Common Stock 630 Equipment 4,530 Intangible Assets 5,040 Inventory 1,380 Notes Payable (long-term) 3,200 Notes Payable (short-term) 400 Prepaid Rent 350 Retained Earnings 5,950 Short-Term Investments 130 Assume that the following events occurred in the following quarter, which ended December 31, 2016. Dollars are in millions. Paid $1,000 cash for additional intangible assets. Issued additional shares of common stock for $10,000 in cash. Purchased equipment; paid $4,000 in cash and signed additional long-term loans for $9,500. Paid $800 cash for accounts payable owed at October 2. Conducted negotiations to purchase a coffee farm, which is expected to cost $8,400. Required:

1-a. Calculate Starbuckss current ratio at October 2, 2016, prior to the transactions listed above. (Round your answer to 2 decimal places.)

1-b. Based on the above calculation and analysis of Apple's current ratio 1.35, indicate which company is in a better position to pay liabilities. Starbucks Apple Inc.