At December 31, 2010, Kraft Foods Inc. reported no short-term investments but did report the following amounts (in millions) in its financial statements:
2010 2009
Cash and Cash Equivalents.......................... $ 2,481.................. $ 2,101
Accounts Receivable, Net.............................. 6,539.................... 5,197
Total Current Liabilities............................... 15,660.................. 11,491
Interest Expense.......................................... 2,024................... 1,237
Income Tax Expense..................................... 1,147................... 1,136
Net Income................................................ 4,114................... 3,021
Required:
1. Compute the quick ratio and times interest earned ratio (to two decimal places) for 2010 and 2009.
2. Did Kraft appear to have increased or decreased its ability to pay current liabilities and future interest obligations as they become due?