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The top part of Ramakrishnan, Inc.’s 2018 and 2017 balance sheets is listed below (in millions...

The top part of Ramakrishnan, Inc.’s 2018 and 2017 balance sheets is listed below (in millions of dollars).

2018 2017 2018 2017
Current assets: Current liabilities:
Cash and marketable securities $ 36 $ 27 Accrued wages and taxes $ 33 $ 32
Accounts receivable 144 129 Accounts payable 88 77
Inventory 207 188 Notes payable 75 67
Total $ 387 $ 344 Total $ 196 $ 176

Calculate Ramakrishnan, Inc.’s current ratio for 2018 and 2017. (Round your answers to 2 decimal places.)

Calculate Ramakrishnan, Inc.’s quick ratio for 2018 and 2017. (Round your answers to 2 decimal places.)

Calculate Ramakrishnan, Inc.’s cash ratio for 2018 and 2017. (Round your answers to 2 decimal places.)

Solutions

Expert Solution

Current Assets for year 2018=   387  
Current liabilities for year 2018=   196  
Current Ratio = Current Assets/Current Liabilities      
387/196=   1.974489796


Current ratio is   1.97  


Inventory for year 2018=   207  
Quick ratio = (Total Current Assets - Inventories)/Total Current liabilities      
(387-207)/196      
=0.9183673469      
Quick ratio is    0.92  


Cash and cash equivalents=   36  
Cash ratio = Cash and cash equivalents/ Total Current liabilities      
36/196      
=0.1836734694      
cash ratio is   0.18  
      

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jeff jeffy answered 3 months ago
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