According to one report, Kraft Foods Inc. sells enough Kool-Aid® mix to make 4,500 litres of the drink every minute during the summer and over 2.5 billion litres each year. At December 31, 2013, the company reported no short-term investments but did report the following amounts (in millions) in its financial statements:

Required:
1. Compute the quick ratio and times interest earned ratio (to two decimal places) for 2013 and 2012.
2. Did Kraft appear to have increased or decreased its ability to pay current liabilities and future interest obligations as they became due? How can you explain the seemingly conflicting findings of your ratio analysis?

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2012 2013 Cash and Cash Equivalents Accounts Receivoble, Net Total Current Liabilities Interest Expense Income Tax Expense Net Income $ 1,244 4,704 11,044 1,240 728 2,901 $ 567 5,197 17,086 604 1,002 2,590