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Selected financial data regarding current assets and current liabilities for ACME Corporation and Wayne Enterprises, are as follows: ($ 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 ACHE Corporation $549 6 738 10,681 1,207 $13,181 $9,121 1,857 1,165 $12,143 Wayne Enterprises. $335 411 256 9,109 305 $10,416 $4,463 1,111 2,523 $8,097 Required: 1-a. Calculate the current ratio for ACME Corporation and Wayne Enterprises. 1-b. Which company has the more favorable ratio? 2-a. Calculate the acid-test (quick) ratio for ACME Corporation and Wayne Enterprises. 2-h. Which company has the more favorable ratio?

Selected financial data regarding current assets and current liabilities for ACME Corporation and Wayne Enterprises, are as follows: ($ 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 ACHE Corporation $549 6 738 10,681 1,207 $13,181 $9,121 1,857 1,165 $12,143 Wayne Enterprises. $335 411 256 9,109 305 $10,416 $4,463 1,111 2,523 $8,097 Required: 1-a. Calculate the current ratio for ACME Corporation and Wayne Enterprises. 1-b. Which company has the more favorable ratio? 2-a. Calculate the acid-test (quick) ratio for ACME Corporation and Wayne Enterprises. 2-h. Which company has the more favorable ratio?

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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Selected financial data regarding current assets and current liabilities for ACME Corporation and Wayne Enterprises, are as follows: ($ 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 ACHE Corporation $549 6 738 10,681 1,207 $13,181 $9,121 1,857 1,165 $12,143 Wayne Enterprises. $335 411 256 9,109 305 $10,416 $4,463 1,111 2,523 $8,097 Required: 1-a. Calculate the current ratio for ACME Corporation and Wayne Enterprises. 1-b. Which company has the more favorable ratio? 2-a. Calculate the acid-test (quick) ratio for ACME Corporation and Wayne Enterprises. 2-h. Which company has the more favorable ratio?
Transcribed Image Text:Selected financial data regarding current assets and current liabilities for ACME Corporation and Wayne Enterprises, are as follows: ($ 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 ACHE Corporation $549 6 738 10,681 1,207 $13,181 $9,121 1,857 1,165 $12,143 Wayne Enterprises. $335 411 256 9,109 305 $10,416 $4,463 1,111 2,523 $8,097 Required: 1-a. Calculate the current ratio for ACME Corporation and Wayne Enterprises. 1-b. Which company has the more favorable ratio? 2-a. Calculate the acid-test (quick) ratio for ACME Corporation and Wayne Enterprises. 2-h. Which company has the more favorable ratio?
Complete this question by entering your answers in the tabs below. Req 1A Req 18 Calculate the current ratio for ACME Corporation and Wayne Enterprises. (Enter your answers in millions. For example, $5,500,000 should be entered as 5.5.) Req 1A Current Ratio Req 1A Req 2A Req 1B Required. 1-a. Calculate the current ratio for ACME Corporation and Wayne Enterprises. 1-b. Which company has the more favorable ratio? 2-a. Calculate the acid-test (quick) ratio for ACME Corporation and Wayne Enterprises. 2-b. Which company has the more favorable ratio? Complete this question by entering your answers in the tabs below. Req 1A Which company has the more favorable ratio? Which company has the more favorable ratio? Req 18 Req 2A Req 2B ACME Corporation Req 18 < Req 1A Req 2A Complete this question by entering your answers in the tabs below. Req 2B < Req 1A Req 2A Req 28 Calculate the acid-test (quick) ratio for ACME Corporation and Wayne Enterprises. (Enter your answers in millions. For example, $5,500,000 should be entered as 5.5.) Acid-Test Ratio ACME Corporation < Req 1B Wayne Enterprises Req 1B > Req 28 Which company has the more favorable ratio? Which company has the more favorable ratio? Complete this question by entering your answers in the tabs below. Req 2A > < Req 2A Wayne Enterprises Req 2B > Req 28
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Req 1A Req 18 Calculate the current ratio for ACME Corporation and Wayne Enterprises. (Enter your answers in millions. For example, $5,500,000 should be entered as 5.5.) Req 1A Current Ratio Req 1A Req 2A Req 1B Required. 1-a. Calculate the current ratio for ACME Corporation and Wayne Enterprises. 1-b. Which company has the more favorable ratio? 2-a. Calculate the acid-test (quick) ratio for ACME Corporation and Wayne Enterprises. 2-b. Which company has the more favorable ratio? Complete this question by entering your answers in the tabs below. Req 1A Which company has the more favorable ratio? Which company has the more favorable ratio? Req 18 Req 2A Req 2B ACME Corporation Req 18 < Req 1A Req 2A Complete this question by entering your answers in the tabs below. Req 2B < Req 1A Req 2A Req 28 Calculate the acid-test (quick) ratio for ACME Corporation and Wayne Enterprises. (Enter your answers in millions. For example, $5,500,000 should be entered as 5.5.) Acid-Test Ratio ACME Corporation < Req 1B Wayne Enterprises Req 1B > Req 28 Which company has the more favorable ratio? Which company has the more favorable ratio? Complete this question by entering your answers in the tabs below. Req 2A > < Req 2A Wayne Enterprises Req 2B > Req 28
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