Starbucks has cash of $2,757 million, inventory of $1,529 million, total current assets of $5,653 million,...

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Question

Starbucks has cash of $2,757 million, inventory of $1,529 million, total current assets of $5,653 million,...

Starbucks has cash of $2,757 million, inventory of $1,529 million, total current assets of $5,653 million, and total current liabilities of $6,168 million on its latest balance sheet. Compute its cash ratio.

A.0.92

B.0.45

C.0.67

D.1.09

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Answer 1

Answer #1

Cash ratio is calculated using the below formula:

Cash ratio=cash+ marketable securities/current liabilities

= $2,757/ $6,168

= 0.4470 0.45

Hence, the answer is option b.

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Answer 2

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Starbucks has cash of $2,757 million, inventory of $1,529 million, total current assets of $5,653 million,...

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Starbucks has cash of $2,757 million, inventory of $1,529 million, total current assets of $5,653 million,...