Question: Selected financial data regarding current assets and current liabilities for Ferris Air and Oceanic Airlines are provided as follows: ($ in millions) Ferris Air Oceanic

Selected financial data regarding current assets and current liabilities for Ferris Air and Oceanic Airlines are provided as follows:

($ in millions) Ferris Air Oceanic Airlines
Current assets:
Cash and cash equivalents $ 1,125 $ 3,684
Current investments 3,004 1,251
Net receivables 711 1,744
Inventory 425 288
Other current assets 170 537
Total current assets $ 5,435 $ 7,504
Current liabilities:
Current debt $ 6,321 $ 7,266
Accounts payable 2,572 2,307
Other current liabilities 0 1,504
Total current liabilities $ 8,893 $ 11,077

1. Calculate the current ratio for Ferris Air and Oceanic Airlines

2.Calculate the acid-test (quick) ratio for Ferris Air and Oceanic Airlines

Which Airlines has the better current ratio?

Which Airlines has the better current ratio?

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