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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