Question
Selected financial data regarding current assets and current liabilities for two competing companies, Simon and Garfunkel, are provided as follows: ($ in millions) Simon Garfunkel
Selected financial data regarding current assets and current liabilities for two competing companies, Simon and Garfunkel, are provided as follows:
| ($ in millions) | Simon | Garfunkel | ||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 640 | $ | 2,940 | ||||
| Short-term investments | 3,610 | 0 | ||||||
| Net receivables | 985 | 1,300 | ||||||
| Inventory | 505 | 201 | ||||||
| Other current assets | 345 | 478 | ||||||
| Total current assets | $ | 6,085 | $ | 4,919 | ||||
| Current liabilities | ||||||||
| Accounts payable | $ | 7,050 | $ | 4,285 | ||||
| Short-term debt | 1,260 | 1,024 | ||||||
| Other current liabilities | 0 | 1,301 | ||||||
| Total current liabilities | $ | 8,310 | $ | 6,610 | ||||
1-a. Calculate the current ratio for Simon. Then calculate the current ratio for Garfunkel. (Round your answers to 2 decimal places.)
Current Ratio
Simon ?
Garfunkel ?
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Advanced Accounting
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
12th edition
77862228, 978-1259283567, 1259283569, 978-0077862220
