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.