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

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

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(S in millions) Current assets: American Delta Cash and cash equivalents Current investments Net receivables Inventory Other current assets $1,225 3,104 811 $ 4,684 1,351 1,844 270 637 55.925 B.904 Total current assets Current liabilities: Accounts payable Short-term debt Other current liabilities $6,702 2,672 $ 6,991 2,407 1,MM Total current liabilities S11