Given Below Is Information for Short Corporation and Long Computers,Inc

question 123

Essay

Given below is information for Short Corporation and Long Computers,Inc.at the end of 2017.
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$\begin{array}{lrr}\text { (inmillions) }&\text { Short }&\text { Long }\\\text { Cash and cash equival ents } & \$ 1,100 & \$ 300 \\\text { Short-term investments/marketable securities } & 100 & 900 \\\text { Accounts, notes, and other receivables, net } & 11,700 & 12,400 \\\text { Inventories } & 1,200 & 1,000 \\\text { Prepaid expenses } & 1,400 & 600\\\text { Total current assets } & \$ 15,500 & \$ 15,200 \\\text { Current liabilities } & \$ 5,000 & \$ 4,000 \\\text { Other liabilities } & \$ 2,300 & \$ 12,000 \\\text { Stockhol ders' equity } & \$ 5,300 & \$ 7,300\end{array}$ 1) Using the information provided above, compute the following for each company at December 31, 2018 :
A. Current ratio
B. Acid-test ratio
2) Comment briefly on the liquidity of each of these two companies. Which appears to be more liquid?
3) What other ratios would help you to more fully assess the liquidity of these companies?

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Definitions:

Questionnaires

A tool used in studies that includes various questions designed to collect data from participants.

Holt-Winters Multiplicative Model

A forecasting technique that models time series data with seasonal variations using a multiplicative method to capture trend and seasonality.

Holt-Winters Additive Model

A mathematical approach for time series forecasting that accounts for trends and seasonality, using addition for seasonal effects.

Seasonality

The occurrence of variations that are predictable and repeat over a specific period within a year, often seen in industries like retail and agriculture.