FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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
ACME
Corporation
Wayne
Enterprises
2-b) Which company has the better ratio?
a.) ACME Corporation
b.) Wayne Enterprises
$ 416
6
545
10,551
1,316
$ 12,834
$8,821
1,827
1,014
$ 11,662
$ 305
=
498
226
8,809
275
$ 10,113
2-a. 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
Wayne Enterprises
$ 4,136
1,081
2,325
$ 7,542
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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 ACME Corporation Wayne Enterprises 2-b) Which company has the better ratio? a.) ACME Corporation b.) Wayne Enterprises $ 416 6 545 10,551 1,316 $ 12,834 $8,821 1,827 1,014 $ 11,662 $ 305 = 498 226 8,809 275 $ 10,113 2-a. 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 Wayne Enterprises $ 4,136 1,081 2,325 $ 7,542
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