Problem 8-9A Calculate and analyze ratios (LO8-6) Selected financial data regard

Question

Problem 8-9A Calculate and analyze ratios (LO8-6) Selected financial data regarding current assets and current liabilities for ACME Corporation and Wayne Enterprises, are as follows ACME Corporation Enterprises Wayne (S in millions) Current assets: $ 520 Cash and cash equivalents Current investments Net receivables Inventory Other current assets 531 10,500 1,252 $ 255 484 176 8,309 225 Total current assets $ 12,810 9,449 Current liabilities Current debt Accounts payable and accrued liabilities Other current liabilities $ 8,321 1,777 1,071 4,563 1,031 2.400 Total current liabilities S 11,169 $ 7,994 Required 1-a. Calculate the current ratio for ACME Corporation and Wayne Enterprises. (Enter your answers in millions (i.e., $5,500,000 should be entered as 5.5).) Current Ratio ACME Corporation Wayne Enterprises

Explanation / Answer

1a.

1b. Wayne Enterprise has better current ratio

2b. ACME Corporation has better ratio

ACME Corporation Wayne Enterprises Current ratio (Current assets / Current liabilities) $12,810/$11,169 = 1.1 $9,449/$7,994 = 1.2

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