Selected financial data regarding current assets and current liabilities for ACME Corporation and Wayne Enterprises, are as follows:

Required:
1. Calculate the current ratio for ACME Corporation and Wayne Enterprises. Which company has the better ratio?
2. Calculate the acid-test (quick) ratio for ACME Corporation and Wayne Enterprises. Which company has the better ratio?
3. How would the purchase of additional inventory on credit affect the current ratio? How would it affect the acid-test ratio?

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ACME Corporation Wayne Enterprises ($ in millions) Current assets: $2,494 $ 541 Cash and cash equivalents Current investments Net receivables Inventory Other current assets 1,395 10,710 773 $15,372 125 217 8,600 301 9,784 Total current assets Current liabilities Current debt Accounts payable and accrued liabilities Other current liabilities $ 1,321 8,871 1,270 $11,462 $ 47 5,327 2,334 $7.708 Total current liabilities