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 Airlines             =       =                   1-b. Which Airlines has the better current ratio? Ferris Air Oceanic Airlines   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 Airlines             =       =                   2-b. Which Airlines has the better acid-test ratio?   multiple choice 2 Ferris Air Oceanic Airlines

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
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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 Airlines        
    =       =  
               

1-b. Which Airlines has the better current ratio?

  • Ferris Air
  • Oceanic Airlines


 

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 Airlines        
    =       =  
               

2-b. Which Airlines has the better acid-test ratio?

 

multiple choice 2

  • Ferris Air
  • Oceanic Airlines
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