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Selected financial data regarding current assets and current liabilities for The Home Depot and Lowe's , two close competitors in the building supply industry, are
Selected financial data regarding current assets and current liabilities for The Home Depot and Lowe's, two close competitors in the building supply industry, are as follows: |
($ in millions) | The Home Depot | Lowe's |
Current assets: | ||
Cash and cash equivalents | $ 2,494 | $ 541 |
Current investments | 125 | |
Net receivables | 1,395 | 217 |
Inventory | 10,710 | 8,600 |
Other current assets | 773 | 301 |
Total current assets | $ 15,372 | $ 9,784 |
Current liabilities: | ||
Current debt | $ 1,321 | $ 47 |
Accounts payable and accrued liabilities | 8,871 | 5,327 |
Other current liabilities | 1,270 | 2,334 |
Total current liabilities | $ 11,462 | $ 7,708 |
1) Calculate the current ratio for The Home Depot and Lowe's. 2) Calculate the acid-test (quick) ratio for The Home Depot and Lowe's. |
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