Question: Selected financial data regarding current assets and current liabilities for The Home Depot and Lowe's , two close competitors in the building supply industry, are

Selected financial data regarding current assets and current liabilities for The Home Depot and Lowe's, two close competitors in the building supply industry, are as follows:

($ in millions) The Home Depot Lowe's
Current assets:
Cash and cash equivalents $ 2,494 $ 541
Current investments 125
Net receivables 1,395 217
Inventory 10,710 8,600
Other current assets 773 301
Total current assets $ 15,372 $ 9,784
Current liabilities:
Current debt $ 1,321 $ 47
Accounts payable and accrued liabilities 8,871 5,327
Other current liabilities 1,270 2,334
Total current liabilities $ 11,462 $ 7,708

1) Calculate the current ratio for The Home Depot and Lowe's.

2) Calculate the acid-test (quick) ratio for The Home Depot and Lowe's.

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