Question: Selected financial data regarding current assets and current liabilities for ACME Corporation and Wayne Enterprises, are as follows: ($ in millions) ACME Corporation Wayne Enterprises
Selected financial data regarding current assets and current liabilities for ACME Corporation and Wayne Enterprises, are as follows:
| ($ in millions) | ACME Corporation | Wayne Enterprises |
|---|---|---|
| Current assets: | ||
| Cash and cash equivalents | $389 | $225 |
| Current investments | 6 | 547 |
| Net receivables | 581 | 146 |
| Inventory | 10,618 | 8,009 |
| Other current assets | 1,345 | 195 |
| Total current assets | $12,939 | $9,122 |
| Current liabilities: | ||
| Current debt | $8,021 | $4,206 |
| Accounts payable | 1,747 | 1,001 |
| Other current liabilities | 1,151 | 2,495 |
| Total current liabilities | $10,919 | $7,702 |
1-a. Calculate the current ratio for ACME Corporation and Wayne Enterprises. 1-b. Which company has the more favorable ratio? 2-a. Calculate the acid-test (quick) ratio for ACME Corporation and Wayne Enterprises. 2-b. Which company has the more favorable ratio?
1A: Calculate the current ratio for ACME Corporation and Wayne Enterprises. (Enter your answers in millions. For example, $5,500,000 should be entered as 5.5.)
1B Which company has the more favorable ratio?
2A: Calculate the acid-test (quick) ratio for ACME Corporation and Wayne Enterprises. (Enter your answers in millions. For example, $5,500,000 should be entered as 5.5.)
2B: Which company has the more favorable ratio?
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