7 Problem 8-9B (Algo) Calculate and analyze ratios (LO8-6) View previous attempt 3 points Ferris Air Selected financial data regarding current assets and current liabilities for Ferris Air and Oceanic Airlines are provided as follows: ($ in millions) Oceanic Airlines Current assets: Cash and cash equivalents $1,135 $3,784 Current investments 3,014 1,261 Net receivables 721 1,754 eBook Inventory 435 298 Other current assets 180 547 Total current assets $5,485 $7,644 Current liabilities: References Current debt $6,779 $6,691 Accounts payable 2,582 2,317 Other current liabilities 0 1,514 Total current liabilities $9,361 $10,522 Required: Mc Graw Hill 1-a. Calculate the current ratio for Ferris Air and Oceanic Airlines. 1-b. Which company has the more favorable current ratio? 2-a. Calculate the acid-test (quick) ratio for Ferris Air and Oceanic Airlines. 2-b. Which company has the more favorable acid-test ratio? Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Calculate the acid-test (quick) ratio for Ferris Air and Oceanic Airlines. (Enter your answers in millions. For example, $5,500,000 should be entered as 5.5.) < Prev 7 of 11 Next >
7 Problem 8-9B (Algo) Calculate and analyze ratios (LO8-6) View previous attempt 3 points Ferris Air Selected financial data regarding current assets and current liabilities for Ferris Air and Oceanic Airlines are provided as follows: ($ in millions) Oceanic Airlines Current assets: Cash and cash equivalents $1,135 $3,784 Current investments 3,014 1,261 Net receivables 721 1,754 eBook Inventory 435 298 Other current assets 180 547 Total current assets $5,485 $7,644 Current liabilities: References Current debt $6,779 $6,691 Accounts payable 2,582 2,317 Other current liabilities 0 1,514 Total current liabilities $9,361 $10,522 Required: Mc Graw Hill 1-a. Calculate the current ratio for Ferris Air and Oceanic Airlines. 1-b. Which company has the more favorable current ratio? 2-a. Calculate the acid-test (quick) ratio for Ferris Air and Oceanic Airlines. 2-b. Which company has the more favorable acid-test ratio? Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Calculate the acid-test (quick) ratio for Ferris Air and Oceanic Airlines. (Enter your answers in millions. For example, $5,500,000 should be entered as 5.5.) < Prev 7 of 11 Next >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:7
Problem 8-9B (Algo) Calculate and analyze ratios (LO8-6)
View previous attempt
3
points
Ferris Air
Selected financial data regarding current assets and current liabilities for Ferris Air and Oceanic Airlines are provided as follows:
($ in millions)
Oceanic
Airlines
Current assets:
Cash and cash equivalents
$1,135
$3,784
Current investments
3,014
1,261
Net receivables
721
1,754
eBook
Inventory
435
298
Other current assets
180
547
Total current assets
$5,485
$7,644
Current liabilities:
References
Current debt
$6,779
$6,691
Accounts payable
2,582
2,317
Other current liabilities
0
1,514
Total current liabilities
$9,361
$10,522
Required:
Mc
Graw
Hill
1-a. Calculate the current ratio for Ferris Air and Oceanic Airlines.
1-b. Which company has the more favorable current ratio?
2-a. Calculate the acid-test (quick) ratio for Ferris Air and Oceanic Airlines.
2-b. Which company has the more favorable acid-test ratio?
Complete this question by entering your answers in the tabs below.
Req 1A
Req 1B
Req 2A
Req 2B
Calculate the acid-test (quick) ratio for Ferris Air and Oceanic Airlines. (Enter your answers in millions. For example,
$5,500,000 should be entered as 5.5.)
< Prev
7 of 11
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