PROBLEM

Walgreen Company is one of the nation's largest discount drugstores. Access Walgreen Company's most recent Annual Report by following these steps: go to www.sec.gov and click on the "Search for Company Filings" under "Filings and Forms (EDGAR)". Click on "Companies and Other Filers" and key in "Walgreens" (don't include the quotes) in the Company Name box. Key in "10-K" (do not use quotes) in the "Form Type" box to the right of the page and click "Retrieve Filings." Click on the 10-K form that was filed with the SEC on 11/21/2003. Now click on "Document 5" to view Walgreens' Annual Report for the 2003 fiscal year.

1. Compute Walgreens' current ratio for the years ending August 31, 2003 and August 31, 2002. Comment on Walgreens' current ratio.
2. Now follow the same directions (above) and access the most recent Annual Report for RiteAid Corp, a competitor of Walgreens. This time you'll need to click on "Document 1" to view the Annual Report for the 2003 fiscal year. Compute Rite Aid's current ratio for the fiscal years ending March 1, 2003 and March 2, 2002. How do the current ratios for Rite Aid compare with the current ratios for Walgreens?