Homework Help is Here – Start Your Trial Now!
Business
Finance
Question Selected financial data regarding current assets and current liabilities for Ferris Air and Oceanic Airlines are provided as follows: ($ in millions) Ferris Air Oceanic Airlines Current assets:     Cash and cash equivalents $1,255 $4,984 Current investments 3,134 1,381 Net receivables 841 1,874 Inventory 555 418 Other current assets 300 667 Total current assets 6,085 9,324 Current liabilities:     Current debt 6,661 7,149 Accounts payable 2,702 2,437 Other current liabilities 0 1,634 Total current liabilities 9,363 11,220   Required: 1-a. 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.)     Current Ratio Ferris Air       Oceanic air     Total current assets $6,085 =   0.650 $9,324 = 0.831 Total current liabilities $9,363       11220       2-a. 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.) Acid-Test Ratio Ferris Air   Oceanic Air     Quick assets   =   =   Total current liabilities $9,363   11220

Question Selected financial data regarding current assets and current liabilities for Ferris Air and Oceanic Airlines are provided as follows: ($ in millions) Ferris Air Oceanic Airlines Current assets:     Cash and cash equivalents $1,255 $4,984 Current investments 3,134 1,381 Net receivables 841 1,874 Inventory 555 418 Other current assets 300 667 Total current assets 6,085 9,324 Current liabilities:     Current debt 6,661 7,149 Accounts payable 2,702 2,437 Other current liabilities 0 1,634 Total current liabilities 9,363 11,220   Required: 1-a. 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.)     Current Ratio Ferris Air       Oceanic air     Total current assets $6,085 =   0.650 $9,324 = 0.831 Total current liabilities $9,363       11220       2-a. 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.) Acid-Test Ratio Ferris Air   Oceanic Air     Quick assets   =   =   Total current liabilities $9,363   11220

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
See similar textbooks
icon
Related questions
Question
Practice Pack
Question

Selected financial data regarding current assets and current liabilities for Ferris Air and Oceanic Airlines are provided as follows:

($ in millions) Ferris Air Oceanic Airlines
Current assets:    
Cash and cash equivalents $1,255 $4,984
Current investments 3,134 1,381
Net receivables 841 1,874
Inventory 555 418
Other current assets 300 667
Total current assets 6,085 9,324
Current liabilities:    
Current debt 6,661 7,149
Accounts payable 2,702 2,437
Other current liabilities 0 1,634
Total current liabilities 9,363 11,220

 

Required:

1-a. 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.)

 
 
Current Ratio Ferris Air       Oceanic air    
Total current assets $6,085 =   0.650 $9,324 = 0.831
Total current liabilities $9,363       11220    

 

2-a. 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.)

Acid-Test Ratio Ferris Air   Oceanic Air    
Quick assets   =   =  
Total current liabilities $9,363   11220    

 

Expert Solution
trending now

Trending now

This is a popular solution!

video

Learn your way

Includes step-by-step video

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS