Selected financial data regarding current assets and current liabilities for ACME Corporation and Wayne Enterprises,...
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Accounting
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
$ 378
$ 295
Current investments
5
431
Net receivables
711
216
Inventory
10,511
8,709
Other current assets
1,375
265
Total current assets
$ 12,980
$ 9,916
Current liabilities:
Current debt
$ 8,721
$ 4,266
Accounts payable and accrued liabilities
1,817
1,071
Other current liabilities
1,084
2,356
Total current liabilities
$ 11,622
$ 7,693
Required:
1-a. Calculate the current ratio for ACME Corporation and Wayne Enterprises. (Enter your answers in millions (i.e., $5,500,000 should be entered as 5.5).)
1-b. Which company has the better ratio?
ACME Corporation
Wayne Enterprises
2-a. Calculate the acid-test (quick) ratio for ACME Corporation and Wayne Enterprises. (Enter your answers in millions. (i.e., $5,500,000 should be entered as 5.5.))
2-b. Which company has the better ratio?
ACME Corporation
Wayne Enterprises
Answer & Explanation
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