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Selected financial data regarding current assets and current liabilities for ACME Corporation and Wayne Enterprises, are as follows: ($ in millions) ACME Corporation Wayne Enterprises
Selected financial data regarding current assets and current liabilities for ACME Corporation and Wayne Enterprises, are as follows:
($ in millions) | ACME Corporation | Wayne Enterprises |
---|---|---|
Current assets: | ||
Cash and cash equivalents | $533 | $325 |
Current investments | 5 | 530 |
Net receivables | 611 | 246 |
Inventory | 10,548 | 9,009 |
Other current assets | 1,273 | 295 |
Total current assets | $12,970 | $10,405 |
Current liabilities: | ||
Current debt | $9,021 | $4,288 |
Accounts payable | 1,847 | 1,101 |
Other current liabilities | 1,164 | 2,415 |
Total current liabilities | $12,032 | $7,804 |
Required:
1-a. Calculate the current ratio for ACME Corporation and Wayne Enterprises. 1-b. Which company has the more favorable ratio? 2-a. Calculate the acid-test (quick) ratio for ACME Corporation and Wayne Enterprises. 2-b. Which company has the more favorable ratio?
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