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 millions)Company ACompany BCurrent assets:Cash and cash equivalents$1,225$4,684Current investments3,1041,351Net receivables8111,844Inventory525388Other current assets270637Total current assets$5,935$8,904Current liabilities:Current debt$6,702$6,991Accounts payable2,6722,407Other current liabilities01,604Total current liabilities$9,374$11,002
Required:
1-a. Calculate the current ratio for Company A and Company B.
1-b. Which company has the more favorable current ratio?
2-a. Calculate the acid-test (quick) ratio for Company A and Company B.
2-b. Which company has the more favorable acid-test ratio?

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