Determine the quick ratio for both companies

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Reference no: EM13533259

The current assets and current liabilities for Apple Computer, Inc., and Dell Inc. are shown as follows at the end of a recent fiscal period:


Apple Computer, Inc.

Dell Inc.


(in millions)

(in millions)


Sept. 26, 2009

Jan. 29, 2010

Current assets:



Cash and cash equivalents

$ 5,263

$10,635

Short-term investments

18,201

373

Accounts receivable

4,496

8,543

Inventories

455

1,051

Other current assets*

3,140

3,643

Total current assets

$31,555

$24,245

Current liabilities:



Accounts payable

$ 9,453

$15,257

Accrued and other current liabilities

2,053

3,703

Total current liabilities

$11,506

$18,960

*These represent prepaid expense and other nonquick current assets.

a. Determine the quick ratio for both companies.

b. Interpret the quick ratio difference between the two companies.

Reference no: EM13533259

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