Question

The top part of Ramakrishnan, Inc,’s 2015 and 2014 balance sheets is listed below (in millions...

The top part of Ramakrishnan, Inc,’s 2015 and 2014 balance sheets is listed below (in millions of dollars).
2015 2014 2015 2014
  Current assets:   Current liabilities:
      Cash and marketable securities $ 42 $ 33       Accrued wages and taxes $ 36 $ 35
      Accounts receivable 147 132       Accounts payable 91 80
      Inventory 210 191       Notes payable 72 64
           Total $ 399 $ 356            Total $ 199 $ 179

Calculate Ramakrishnan, Inc.’s current ratio for 2015 and 2014. (Round your answers to 2 decimal places.)

Current ratio
  2015 times
  2014 times

Calculate Ramakrishnan, Inc.’s quick ratio for 2015 and 2014. (Round your answers to 2 decimal places.)

Quick ratio
  2015 times
  2014 times

Calculate Ramakrishnan, Inc.’s cash ratio for 2015 and 2014. (Round your answers to 2 decimal places.)

Cash ratio
  2015 times
  2014 times
0 0
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Answer #1

Calculate Ramakrishnan, Inc.’s current ratio for 2015 and 2014. (Round your answers to 2 decimal places.)

Current ratio
  2015 399/199 = 2.01 times
  2014 356/179 = 1.99 times

Calculate Ramakrishnan, Inc.’s quick ratio for 2015 and 2014. (Round your answers to 2 decimal places.)

Quick ratio
  2015 189/199 = 0.95 times
  2014 165/179 = 0.92 times

Calculate Ramakrishnan, Inc.’s cash ratio for 2015 and 2014. (Round your answers to 2 decimal places.)

Cash ratio
  2015 42/199 = 0.21 times
  2014 33/179 = 0.18 times
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