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 $ $
Current investments
Net receivables
Inventory
Other current assets
Total current assets $ $
Current liabilities:
Current debt $ $
Accounts payable
Other current liabilities
Total current liabilities $ $
Required:
a Calculate the current ratio for ACME Corporation and Wayne Enterprises.
b Which company has the more favorable ratio?
a Calculate the acidtest quick ratio for ACME Corporation and Wayne Enterprises.
b Which company has the more favorable ratio?
