The top part of Ramakrishnan, Inc s 2018 and 2017 balancesheets is lis...

Current Assets for year 2018 387 Current liabilities for year 2018 196 Current Ratio Curren ....

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

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Finance

The top part of Ramakrishnan, Inc.â€™s 2018 and 2017 balancesheets 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.â€™s current ratio for 2018 and 2017.(Round your answers to 2 decimal places.)
Calculate Ramakrishnan, Inc.â€™s quick ratio for 2018 and 2017.(Round your answers to 2 decimal places.)
Calculate Ramakrishnan, Inc.â€™s cash ratio for 2018 and 2017.(Round your answers to 2 decimal places.)

Answer & Explanation Solved by verified expert

3.8 Ratings (615 Votes)

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

Current ratio isÂ Â 1.97Â Â

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

Cash and cash equivalents=Â Â 36Â Â
Cash ratio = Cash and cash equivalents/ Total Current liabilitiesÂ Â Â Â Â
36/196Â Â Â Â Â
=0.1836734694Â Â Â Â Â
cash ratio isÂ Â 0.18Â Â
Â Â Â Â Â

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	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