Nestls financial statements are presented in Appendix B. Financial statements of Delfi Limited are presented in Appendix

Nestlé’s financial statements are presented in Appendix B. Financial statements of Delfi Limited are presented in Appendix C.

Instructions

a. At the end of the most recent fiscal year reported, what was Nestlé’s largest current liability account? What were its total current liabilities? What was Delfi Limited’s largest current liability account? What were its total current liabilities?

b. Based on information contained in those financial statements, compute the following for each company for the most recent fiscal year reported.
1. Working capital.
2. Current ratio.

c. What conclusions concerning the relative liquidity of these companies can be drawn from these data?