Time Remaining: 01:41:21 Subm his Question: 1 pt 60f 8 (2 complete) This Test: 1

Question

Time Remaining: 01:41:21 Subm his Question: 1 pt 60f 8 (2 complete) This Test: 10 pts po In December 2015, Apple had cash of $37.74 billion, current assets of $75.82 billion, and current liabilities of $75.86 billion. It also had inventories of $2.45 billion. 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 Hewiett-Packard? a. What was Apple's current ratio? Apple's current ratio was Round to two decimal places) b. What was Apple's quick ratio? Apple's quick ratio was (Round to two decimal places.) 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 Hewlett-Packard? (Select the best choice below) A App e s lower current and quick ratios demonstrate that as much higher asset qudy than does Hede Packard this mean a a nch Apple as more a diiri ia. n and e H tpac Apple's higher current and quick ratios demonstrate that it has much h qu dity than does He lett-Packard. This means that in a p ch Appe has more i tyta draw onthan doen Hewet, her asset ard a O C. Apple's higher current and quick ratios demonstrate that it has much lower asset liquidity than does Hewlett-Packard. This means that in a pinch, Apple has more liquidity to draw on than does Hewlet-Packard. O D. Apple's higher current and quick ratios demonstrate that it has much higher asset liquidity than does Hewlett-Packard. This means that in a pinch, Apple has less liquidity to draw on than does Hewlet- Packard Click to select your answerfs).

Explanation / Answer

Current ratio= Current Aaset/current liability

=75.82/75.86
=1.00

Quick ratio = (Current asset- Inventories)/Current assets
=75.82-2.45/75.86
0.97



B is the applicable option

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