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Problem 8-9B (Algo) Calculate and analyze ratios (LO8-6) Selected financial data regarding current assets and current liabilities for Ferris Air and Oceanic Airlines are provided as follows: Oceanic Airlines ($ in millions) Current assets: Cash and cash equivalents Current investments Net receivables Inventory Other current assets Total rocal curr current assets Current rent Current debt liabilities: Accounts payable Other current liabilities Total current liabilities Req 1A Ferris Air Req 1B $1,265 3,144 Req 2A 851 565 310 $6,135 $6,539 2,712 0 $9,251 Required: 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 2B $5,084 1,391 1,884 Which company has the more favorable current ratio? Which company has the more favorable current ratio? 428 677 $9,464 < Req 1A $6,674 2,447 1,644 $10,765 Req 2A >

Problem 8-9B (Algo) Calculate and analyze ratios (LO8-6) Selected financial data regarding current assets and current liabilities for Ferris Air and Oceanic Airlines are provided as follows: Oceanic Airlines ($ in millions) Current assets: Cash and cash equivalents Current investments Net receivables Inventory Other current assets Total rocal curr current assets Current rent Current debt liabilities: Accounts payable Other current liabilities Total current liabilities Req 1A Ferris Air Req 1B $1,265 3,144 Req 2A 851 565 310 $6,135 $6,539 2,712 0 $9,251 Required: 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 2B $5,084 1,391 1,884 Which company has the more favorable current ratio? Which company has the more favorable current ratio? 428 677 $9,464 < Req 1A $6,674 2,447 1,644 $10,765 Req 2A >

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem 8-9B (Algo) Calculate and analyze ratios (LO8-6) Selected financial data regarding current assets and current liabilities for Ferris Air and Oceanic Airlines are provided as follows: Oceanic Airlines ($ in millions) Current assets: Cash and cash equivalents Current investments Net receivables Inventory Other current assets Total rocal curr current assets Current rent Current debt liabilities: Accounts payable Other current liabilities Total current liabilities Req 1A Ferris Air Req 1B $1,265 3,144 Req 2A 851 565 310 $6,135 $6,539 2,712 0 $9,251 Required: 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 2B $5,084 1,391 1,884 Which company has the more favorable current ratio? Which company has the more favorable current ratio? 428 677 $9,464 < Req 1A $6,674 2,447 1,644 $10,765 Req 2A >
Transcribed Image Text:Problem 8-9B (Algo) Calculate and analyze ratios (LO8-6) Selected financial data regarding current assets and current liabilities for Ferris Air and Oceanic Airlines are provided as follows: Oceanic Airlines ($ in millions) Current assets: Cash and cash equivalents Current investments Net receivables Inventory Other current assets Total rocal curr current assets Current rent Current debt liabilities: Accounts payable Other current liabilities Total current liabilities Req 1A Ferris Air Req 1B $1,265 3,144 Req 2A 851 565 310 $6,135 $6,539 2,712 0 $9,251 Required: 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 2B $5,084 1,391 1,884 Which company has the more favorable current ratio? Which company has the more favorable current ratio? 428 677 $9,464 < Req 1A $6,674 2,447 1,644 $10,765 Req 2A >
Problem 8-9B (Algo) Calculate and analyze ratios (LO8-6) Selected financial data regarding current assets and current liabilities for Ferris Air and Oceanic Airlines are provided as follows: Oceanic Airlines ($ in millions) Current assets: Cash and cash equivalents Current investments Net receivables Inventory Other current assets Total current assets. Current liabilities: Current debt Accounts payable Other current liabilities Total current liabilities Req 1A Req 1B Ferris Air Req 2A Current Ratio $1,265 3,144 851 565 310 $6,135 Required: 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? $6,539 2,712 $9,251 Complete this question by entering your answers in the tabs below. Req 2B Ferris Air $5,084 1,391 1,884 428 677 $9,464 $6,674 2,447 1,644 $10,765 Calculate the current ratio for Ferris Air and Oceanic Airlines. (Enter your answers in millions. For example, $5,500,000 should be entered as 5.5.) < Req 1A Oceanic Airlines Req 1B >
Transcribed Image Text:Problem 8-9B (Algo) Calculate and analyze ratios (LO8-6) Selected financial data regarding current assets and current liabilities for Ferris Air and Oceanic Airlines are provided as follows: Oceanic Airlines ($ in millions) Current assets: Cash and cash equivalents Current investments Net receivables Inventory Other current assets Total current assets. Current liabilities: Current debt Accounts payable Other current liabilities Total current liabilities Req 1A Req 1B Ferris Air Req 2A Current Ratio $1,265 3,144 851 565 310 $6,135 Required: 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? $6,539 2,712 $9,251 Complete this question by entering your answers in the tabs below. Req 2B Ferris Air $5,084 1,391 1,884 428 677 $9,464 $6,674 2,447 1,644 $10,765 Calculate the current ratio for Ferris Air and Oceanic Airlines. (Enter your answers in millions. For example, $5,500,000 should be entered as 5.5.) < Req 1A Oceanic Airlines Req 1B >
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