Response to the following problem:
Key figures for the recent two years of Research In Motion and Apple follow.
|
|
Research In Motion
|
Apple
|
|
|
Key Figures ($ millions)
|
Current Year
|
Prior Year
|
Current Year
|
Prior Year
|
|
Current assets ......................
|
$5,813
|
$4,842
|
$31,355
|
$30,006
|
|
Current liabilities
|
2,432
|
2,115
|
11506
|
11,361
|
Required
1. Compute the current ratio for both years for both companies.
2. Which company has the better ability to pay short-term obligations according to the current ratio?
3. Analyze and comment on each company's current ratios for the past two years.
4. How do RIM's and Apple's current ratios compare to their industry (assumed) average ratio of 2.4?