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?

($ in millions) Current assets: Southwest Delta Cash and cash equivalents Current investments Net receivables nventory Other current assets $1,113 1,857 578 469 210 $4,227 2,791 958 2,156 1,023 1,344 $ 8,272 Total current assets Current liabilities: 271 2,209 Current debt Accounts payable and accrued liabilities Other current liabilities $1,627 5,686 5957 $13,270 2,.170 $4,650 Total current liabilities