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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:

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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).)

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1-b. Which company has the better ratio?

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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.))

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2-b. Which company has the better ratio?

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ACME Wayne (S in millions) Current assets: Corporation Enterprises Cash and cash equivalents Current investments Net receivables Inventoy Other current assets $ 520 7 531 10,500 1,252 $ 255 484 176 8,309 225 Total current assets $ 12,810 $9,449 Current liabilities: $ 8,321 1,777 1,071 $4,563 1,031 2,400 Current debt Accounts payable and accrued liabilities Other current liabilities Total current liabilities S 11,169 7,994

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