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See the accompanying Dataset/Excel Template posted to the Dropbox with these instructions. Given the 2017 data for Walmart (WMT), Home Depot (HD), Apple (AAPL), and
See the accompanying Dataset/Excel Template posted to the Dropbox with these instructions. Given the 2017 data for Walmart (WMT), Home Depot (HD), Apple (AAPL), and Procter & Gamble (PG), compute each company's current ratio and acid-test ratio. Round the ratios to two decimal points. Build a bar chart that displays each company's current and acid-test ratio. Answer the following questions: a. Comparability - Which of the three other companies is most like Walmart in terms of its business model? Which is least like Walmart? How is this reflected in the companies' current ratios and acid-test ratios. b. Would you sell to Walmart? If you were the CEO of a small company that had a chance to sell to Walmart, what might be your biggest concern about acquiring Walmart as a customer? (Hint: Review the "What Do the Numbers Mean" insert in the Analysis of Current Liabilities section of chapter 13 of the text.) c. Why might Apple maintain a higher liquidity ratio than the other companies in this group? Why might Apple be maintaining such a high liquidity ratio? Try running a search on this topic and see what you can find in the business press. Be sure to cite your sources. 1 2 Data (use for parts 1 and 2) *All dollar figures in millions Short-term Accounts 3 Company Current Assets Current Liabilities Cash investments receivable, net 4 WMT 59664 78521 6756 in cash 5614 5 HD 18933 16194 3595 in cash 1952 6 AAPL 128645 100814 20289 53892 17874 7 PG 26494 30210 5569 9568 4594 B 9 0 Part 1 - Place calculations here 1 "Given the data above compute each company's current ratio and acid-test ratio. Round the ratios to two decimal points." 2 Company Current Ratio Acid-Test-Ratio 3 WMT -4 HD AAPL PG -7 8 9 Part 2- Place chart here 0 "Build a bar chart that displays each company's current and acid-test ratio." 1 2 -4 5 6 7 8 9
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