The Current Assets and Current Liabilities for Kolbie Company and Newton

question 110

Essay

The current assets and current liabilities for Kolbie Company and Newton Company are as follows:
$\begin{array}{|l|r|r|}\hline &\text { Kolbie Company } & \text { Newton Company } \\&\text { in millions } & \text { in millions } \\&\text { For the Year Ending } & \text { For the Year Ending } \\&\text { December 31 } & \text { December 31 }\\\hline \text { Current assets: }\\\hline \text { Cash and cash equivalents } & \$ 8,352 & \$ 8,546 \\\hline \text { Short-term investments } & 6,034 & 752 \\\hline \text { Accounts receivable } & 3,029 & 5,152 \\\hline \text { Inventories } & 446 & 660 \\\hline \text { Other current assets* } & 2,195 & 2,829 \\\hline \text { Total current assets } & \$ 20,056 & \$ 17,939 \\\hline\\\hline\text { Current liablities: }\\\hline \text { Accounts payable } & \$ 4,970 & \$ 10,430 \\\hline \text { Accrued and other current liabilities } & 3,329 & 6,361 \\\hline \text { Total current liabilities } & \$ 8,299 & \$ 16,791 \\\hline\end{array}$ *These represent prepaid expenses and other non-quick current assets.
a- Determine the quick ratio for both companies.Round to two decimal places.
b- Interpret the quick ratio difference between the two companies.

---

Definitions:

DSM-5

The Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, a handbook used by healthcare professionals as the authoritative guide to the diagnosis of mental disorders.

Well-Being

the state of being comfortable, healthy, or happy.

Stresses Of Life

The various forms of stress encountered in daily life, stemming from work, relationships, health, and other personal challenges.

Community

A group of people living in the same place or having a particular characteristic in common, or the feeling of fellowship with others.