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:
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Apple Computer, Inc.
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Dell Inc.
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(In millions)
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(In millions)
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Sept. 24, 2005
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Feb. 3, 2006
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Current assets:
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Cash and cash equivalents
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$ 3,491
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$ 7,042
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Short-term investments
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4,770
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2,016
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Accounts receivable
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895
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4,089
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Inventories
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165
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576
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Other current assets*
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979
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3,983
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Total current assets
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$10,300
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$17,706
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Current liabilities:
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Accounts payable
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$ 1,779
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$ 9,840
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Accrued and other current liabilities
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1,705
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6,087
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Total current liabilities
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$ 3,484
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$15,927
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*These represent prepaid expense and other nonquick current assets.
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a. Determine the quick ratio for both companies.
b. Interpret the quick ratio difference between the two companies.