The current assets and current liabilities for Apple Computer Inc. and Gateway Inc. are shown as follows at the end of a recent fiscal period:

a. Determine the current and quick ratios for both companies. Round to two decimal places.
b. Interpret the ratio differences between the twocompanies.

Apple Computer Inc. (in thousands) Sept. 29, 2004 Gateway Inc. (in thousands) Dec. 31, 2004 Current assets Cash and cash equivalents Short-term investments Accounts receivable Inventories Other current assets $2,969,000 2,495,000 358,633 284,876 342,121 196,324 217,663 $1,399,617 774,000 101,000 716,000 Total current assets 7.055.000 Current liabilities: Accounts payable Accrued and other current liabilities $1,451,000 1,229,000 $2,680,000 532,329 590,323 $1,122,652 Total current liabilities *These represent deferred tax assets, prepaid expenses, and other nonquick current assets.