Question

Current assets: Cash and cash equivalents $ 346 $ 265 Current investments 5 443 Net receivables 594 186 Inventory 10,592 8,409 Other current assets 1,230 235 Total current assets $ 12,767 $ 9,538 Current liabilities: Current debt $ 8,421 $ 4,026 Accounts payable 1,787 1,041 Other current liabilities 1,091 2,343 Total current liabilities $ 11,299 $ 7,410 Required: 1-a. Calculate the current ratio for ACME Corporation and Wayne Enterprises.

Answer 1

For ACME Corporation = 1.12 times

For Wayne Enterprises = 1.29 times

Step-by-step explanation:

The computation of current ratio is shown below:-

For ACME Corporation

Current Ratio = Total Current Assets ÷ Current Liabilities

= $12,767 ÷ $11,299

= 1.12 times

For Wayne Enterprises

Current Ratio = Total Current Assets ÷ Current Liabilities

= $9,538 ÷ $7,410

= 1.29 times

Here, we assume first figure for ACME Corporation and second figure for Wayne Enterprises