Question: Selected financial data regarding two competing airlines are provided as follows: ( $ in millions ) Company ACompany BCurrent assets:Cash and cash equivalents$ 1 ,
Selected financial data regarding two competing airlines are provided as follows:
$ in millionsCompany ACompany BCurrent assets:Cash and cash equivalents$$Current investmentsNet receivablesInventoryOther current assetsTotal current assets$$Current liabilities:Current debt$$Accounts payableOther current liabilitiesTotal current liabilities$$
Required:
a Calculate the current ratio for Company A and Company B
b Which company has the more favorable current ratio?
a Calculate the acidtest quick ratio for Company A and Company B
b Which company has the more favorable acidtest ratio?
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