rkid=503013 FIN 300 Fall 2018 Stelk Kaylyn King& 1 97/18 10:16 PM Homework: Chap

Question

rkid=503013 FIN 300 Fall 2018 Stelk Kaylyn King& 1 97/18 10:16 PM Homework: Chapter 2 Homework Problems Score: 0 of 1 pt P 2-20 (similar to) I3 of 20 (8 complete) MN Score: 33%, 6 6 of 20 pts Help a. What was Apple's current ratio? b. What was Apple's quick ratio? c. In January 2016, Hewlett-Packard had a quick ratio of 0 66 and a current ratio of 0.90. What can you say about the asset liquidity of Apple relative to eç Apple's current ratio was (Round to two decimal places,) Enter your answer in the answer box and then click Check Answer

Explanation / Answer

Answer: Requirement a Apple's current ratio is calculated as follows Current Ratio =Current Asset/Current Liabilities =$76.47/$76.03 billions                           1.01 Or 1.01 to 1 Requirement b Apple's quick ratio would be calculated as follows: Quick ratio =Quick asset/Current liabilities =(Current Asset-Inventories)/Current liabilities =($76.47-2.45)/$76.03                           0.97 Or ).97 to 1 Requirement c Since Apple has Quick ratio of 0.97 and current ratio of 1.01, it has better position than Hewlett-Packard i.e it has more liquidity than the latter.

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