For each of the five corporations compute the current ratio, which you compute by dividing the total current assets by the total current liabilities - data is located on the balance sheet of each company. 

(b) Then rank the five companies from one to five according to current position or solvency.

 2.(a) Compute the acid test or quick ratio, which you compute by dividing the total current assets (minus prepaid insurance & all the inventory accounts) by the total current liabilities. Some corporations do not show prepaid insurance on their balance sheet. (Because of the materiality concept, they record it as an expense rather than a current asset). 

(b) Then rank your five companies according to current position or solvency.

     

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Current assets: Cash and cash equivalents Marketable securities Accounts receivable, net Inventories Vendor non-trade receivables Other current assets Total current assets Non-current assets: Marketable securities Property, plant and equipment, net Other non-current assets Total non-current assets Total assets Current liabilities: Accounts payable Other current liabilities Deferred revenue Commercial paper Term debt Total current liabilities Non-current liabilities: Term debt Other non-current liabilities Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) Total non-current liabilities Total liabilities Commitments and contingencies Accumulated other comprehensive income/(loss) Total shareholders' equity ASSETS: Shareholders' equity: Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 16,426,786 and 16,976,763 shares issued and outstanding, respectively Retained earnings Total liabilities and shareholders' equity LIABILITIES AND SHAREHOLDERS' EQUITY: See accompanying Notes to Consolidated Financial Statements. Apple Inc. | 2021 Form 10-K | 31 $ $ $ $ September 25, 2021 34,940 $ 27,699 26,278 6,580 25,228 14,111 134,836 127,877 39,440 48,849 216,166 351,002 54,763 47,493 7,612 6,000 9,613 125,481 109,106 53,325 162,431 287,912 57,365 5,562 163 63,090 351,002 $ $ $ September 26, 2020 38,016 52,927 16,120 4,061 21,325 11,264 143,713 100,887 36,766 42,522 180,175 323,888 42,296 42,684 6,643 4,996 8,773 105,392 98,667 54,490 153,157 258,549 50,779 14,966 (406) 65,339 323,888 Current assets: Cash and cash equivalents Marketable securities Accounts receivable, net Inventories Vendor non-trade receivables Other current assets Total current assets Non-current assets: Marketable securities Property, plant and equipment, net Other non-current assets Total non-current assets Total assets Current liabilities: Accounts payable Other current liabilities Deferred revenue Commercial paper Term debt Total current liabilities Non-current liabilities: Term debt Other non-current liabilities Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) Total non-current liabilities Total liabilities Commitments and contingencies Accumulated other comprehensive income/(loss) Total shareholders' equity ASSETS: Shareholders' equity: Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 16,426,786 and 16,976,763 shares issued and outstanding, respectively Retained earnings Total liabilities and shareholders' equity LIABILITIES AND SHAREHOLDERS' EQUITY: See accompanying Notes to Consolidated Financial Statements. Apple Inc. | 2021 Form 10-K | 31 $ $ $ $ September 25, 2021 34,940 $ 27,699 26,278 6,580 25,228 14,111 134,836 127,877 39,440 48,849 216,166 351,002 54,763 47,493 7,612 6,000 9,613 125,481 109,106 53,325 162,431 287,912 57,365 5,562 163 63,090 351,002 $ $ $ September 26, 2020 38,016 52,927 16,120 4,061 21,325 11,264 143,713 100,887 36,766 42,522 180,175 323,888 42,296 42,684 6,643 4,996 8,773 105,392 98,667 54,490 153,157 258,549 50,779 14,966 (406) 65,339 323,888

Answer rating: 100% (QA)

To compute the current ratio and the quick ratio for each of the five corporations well use the give... View the full answer