Which of the four airlines has the best acid-test ratio

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Reference no: EM131521629

Question: Selected financial data regarding current assets and current liabilities for American Airlines and Delta Airlines are provided as follows:

Required: 1. Calculate the current ratio for American Airlines and Delta Airlines. Compare your calculations with those for United Airlines and Southwest Airlines reported in the chapter text. Which of the four airlines has the best current ratio?

2. Calculate the acid-test (quick) ratio for American Airlines and Delta Airlines. Compare your calculations with those for United Airlines and Southwest Airlines reported in the chapter text. Which of the four airlines has the best acid-test ratio?

3. How would the cash purchase of additional inventory affect the current ratio? How would it affect the acid-test ratio?

Reference no: EM131521629

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