Question: The current assets and current liabilities for Apple Inc. and Dell, Inc., are shown as follows at the end of a recent fiscal period: *These
The current assets and current liabilities for Apple Inc. and Dell, Inc., are shown as follows at the end of a recent fiscal period:
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*These represent prepaid expense and other nonquick current assets.
a. Determine the quick ratio for both companies.
b. Interpret the quick ratio difference between the twocompanies.
Apple Inc. Dell, Inc. in millions) (in millions) Current assets: Cash and cash equivalents Short-term investments Accounts receivable Inventories Other current assets $11,261 14,359 11,560 1,051 3,447 $41,678 $13,913 452 10,136 1,301 3,219 $29,021 Total current assets Current liabilities: Accounts payable Accrued and other current liabilities $17,738 2,984 $20,722 $15,474 4,009 $19,483 Total current liabilities
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a b It is clear that Apple Incs shortterm liquidity is stronger than Dells Apples quick rati... View full answer
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