You are interested in further analyzing and comparing the liquidity of Pfizer Inc., and Johnson & Johnson Company. In an earlier analysis in Appendix B of Chapter 6, you found the current ratios of both companies at the end of fiscal year 2016 were above the threshold of 1 at 1.25 for Pfizer and 2.47 for Johnson & Johnson. In the Chapter 13 Financial Statement Analysis case, you assessed additional measures of Johnson & Johnson's liquidity, which follow. Using information from the 2015 and 2016 financial Statements for Pfizer, answer the following questions about the company's liquidity and then compare the two companies.

a. Compute Pfizer's quick ratio for each year.

b. Compute Pfizer's cash ratio for each year.

c. Compute Pfizer's defensive interval ratio for each year.

d. Comment on changes in Pfizer's liquidity from 2015 to 2016 based on the ratios computed.

e. Compare the changes in Pfizer's liquidity from 2015 to 2016 to those computed in Example 13.19 in the text for Johnson & Johnson. The following tables are included for the comparison.

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Pfizer Inc* Percent Fiscal Year (in milkons) 2016 Change 2015 Total assets $167.381 $171.615 2.5% Cash and cash equ valents 2.595 3 641 (28.7) Short term marketabe securit es 19 649 15.255 (22 4) 8 176 Accounts receivabe 8,225 0.6 Currentassets 43.804 (11,1) 38.949 Curren tliabi ities 31,115 29 399 58 Pfizer Inc* Percent Fiscal Year fin milions) 2016 2015 Change 9 648 12,329 Cost of goods so d 27.8 Sales, marketing and adm nistrat ve expenses 14,837 14.809 0.2 Research and development expense 7.872 7,690 2.4 Depreciation and amortization 5.157 5,757 116 (45 6) Work ng capital 14 405 7,834 ( 16. 1} Current rato 149 1.25 Johnson & Johnson Company** {from Example 13.19 in text) 2015 2016 Percent Change S32.463 S38,745 Work ng cap tal 19.4% Current rat o 217 13.8 2 47 Quick or acid test rat o 1.77 15.3 204 Cash ratio 1.38 159 15.2 Defensive interval ratio 373.1 416 6 11.6