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. In Chapter 3 we computed Walgreens’ current ratio for the years ending August 31, 2003 and August 31, 2002 and found that Walgreens’ current ratio for 2003 was $6,358.1 million/$3,420.5 million = 1.86; for 2002, the current ratio was $5,166.5 million/$2,955.2 million = 1.75. We concluded that the current ratios in the two years are very similar and indicate Walgreens’ ability to have sufficient current assets to discharge their current liabilities. Now, using the consolidated Balance Sheets, compute the quick ratio for 2003 and 2002.
2. In Chapter 3 we also accessed the most recent Annual Report for RiteAid Corp, a competitor of Walgreens, by following the directions above and clicking on "Document 1" to view the most recent Annual Report. We computed Rite Aid’s current ratio for the fiscal years ending March 1, 2003 and March 2, 2002 and found the following: Rite Aid’s current ratio for 2003 was $3,243.887 million/$1,566.998 million = 2.07; for 2002, the current ratio was $3,302.1 million/$1,721.9 million = 1.92. Again, the current ratios in the two years are very similar and indicate Rite Aid has sufficient current assets to discharge their current liabilities. Rite Aid’s current ratios are slightly stronger than Walgreens’. We must now use the consolidated Balance Sheets to compute the quick ratio for Rite Aid for the two most recent fiscal years and compare it with the results we obtained for Walgreens.