Question

Selected financial data regarding current assets and current liabilities for Southwest Airlines and Delta Airlines are provided as follows:


Required:
1. Calculate the current ratio for Southwest Airlines and Delta Airlines. Compare your calculations with those for United Airlines and American Airlines reported in the chapter text. Which of the four airlines has the best current ratio?
2. Calculate the acid-test (quick) ratio for Southwest Airlines and Delta Airlines. Compare your calculations with those for United Airlines and American Airlines reported in the chapter text. Which of the four airlines has the best acid-test ratio?
3. How would the purchase of additional inventory with cash affect the current ratio? How would it affect the acid-testratio?


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  • CreatedJuly 15, 2014
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