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?
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
