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#### Calculate and analyze ratios (LO8-6) 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   \$ 1,113         \$ 2,791       Current investments     1,857           958       Net receivables     578           2,156       Inventory     469           1,023       Other current assets     210           1,344       Total current assets   \$ 4,227         \$ 8,272       Current liabilities:                         Current debt   \$ 271         \$ 1,627       Accounts payable     2,209           5,686       Other current liabilities     2,170           5,957       Total current liabilities   \$ 4,650         \$ 13,270         Required: 1-a

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Calculate and analyze ratios (LO8-6)

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 \$ 1,113 \$ 2,791 Current investments 1,857 958 Net receivables 578 2,156 Inventory 469 1,023 Other current assets 210 1,344 Total current assets \$ 4,227 \$ 8,272 Current liabilities: Current debt \$ 271 \$ 1,627 Accounts payable 2,209 5,686 Other current liabilities 2,170 5,957 Total current liabilities \$ 4,650 \$ 13,270

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 = 0 = 0

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

• 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 = 0 = 0

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

• Ferris Air

• Oceanic Airlines

## 2.87 USD

### Option 2

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