The top part of Rammy's Inc.'s 2018 balance sheet is listed as follows (in millions of dollars).
$$\begin{array} { l r l l r }
\text { Current assets: } & & \text { Curreat liabilities: } & \
\text { Cash ard marketable securities } & \$ 5 & \text { Accrued wages and taxes } & \$6\
\text { Accounts receivable } & 15 & \text { Accounts payable } & 10 \
\text { Irventory } & 95 & \text { Notes payable } & 50 \
\text { Total } & \$ 115 & \text { Total } & \$ 66
\end{array}$$
What are Mars, Inc.'s current ratio, quick ratio, and cash ratio for 2018?
A) 1.74242, 0.30303, 0.07576
B) 7.1875, 1.25, 0.3125
C) 1.43939, 0.30303, 0.07576
D) 19.16667, 3.33333, 0.83333

Question

The top part of Rammy's Inc.'s 2018 balance sheet is listed as follows (in millions of dollars).
$$\begin{array} { l r l l r } 
\text { Current assets: } & & \text { Curreat liabilities: } & \
\text { Cash ard marketable securities } & \$  5 & \text { Accrued wages and taxes } &  \$6\
\text { Accounts receivable } & 15 & \text { Accounts payable } & 10 \
\text { Irventory } & 95 & \text { Notes payable } & 50 \
\text { Total } & \$ 115 & \text { Total } & \$ 66
\end{array}$$
What are Mars, Inc.'s current ratio, quick ratio, and cash ratio for 2018?
A) 1.74242, 0.30303, 0.07576
B) 7.1875, 1.25, 0.3125
C) 1.43939, 0.30303, 0.07576
D) 19.16667, 3.33333, 0.83333

Quizplus · Accepted Answer

Current ratio = Total current assets / Total current liabilities = 115 / 66 = 1.74242Quick ratio = (Total current assets - Inventory) / Total current liabilities = (115 - 95) / 66 = 0.30303Cash ratio = (Cash and marketable securities) / Total current liabilities = 5 / 66 = 0.07576

The Top Part of Rammy's Inc What Are Mars, Inc