The current assets and current liabilities for Apple Computer Inc. and Gateway Inc. are shown as follows at the end of a recent fiscal period:

a. Determine the current and quick ratios for both companies. Round to two decimal places.
b. Interpret the ratio differences between the twocompanies.

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Apple Computer Inc. (in thousands) Sept. 29, 2004 Gateway Inc. (in thousands) Dec. 31, 2004 Current assets Cash and cash equivalents Short-term investments Accounts receivable Inventories Other current assets $2,969,000 2,495,000 358,633 284,876 342,121 196,324 217,663 $1,399,617 774,000 101,000 716,000 Total current assets 7.055.000 Current liabilities: Accounts payable Accrued and other current liabilities $1,451,000 1,229,000 $2,680,000 532,329 590,323 $1,122,652 Total current liabilities *These represent deferred tax assets, prepaid expenses, and other nonquick current assets.