The fiscal 2016 balance sheet for Whole Foods Market reports the following data (in millions). Cash and Cash Equivalents Marketable Securities Accounts Receivable Merchandise Inventories Current Assets Current Liabilities $351 $379 $242 $517 $1,975 $1,341 What is the company's current ratio? A. 0.69 B. 1.38 C. 0.72 D. 1.47 E. None of the above

Question

Petersen

Business

22 March, 20:27

The fiscal 2016 balance sheet for Whole Foods Market reports the following data (in millions). Cash and Cash Equivalents Marketable Securities Accounts Receivable Merchandise Inventories Current Assets Current Liabilities $351 $379 $242 $517 $1,975 $1,341 What is the company's current ratio? A. 0.69 B. 1.38 C. 0.72 D. 1.47 E. None of the above

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Answers (2)

Know the Answer?

Vanessa Ross · Answer 1

Option C 0.72 is correct

Explanation:

Cash and cash equivalents 351

Marketable securities 379

Accounts receivable 242

Total quick assets 972

Divide by Current liabilities 1341

Quick ratio 0.72

Davion Velez · Answer 2

D. 1.47

Explanation:

The data are limped and should be separated first as follows:

Cash and Cash Equivalents = $351

Marketable Securities = $379

Accounts Receivable = $242

Merchandise Inventories = $517

Current Assets = $1,975

Current Liabilities = $1,341

To calculate the company's current ratio w divide the current assets by current liabilities as follow:

Current ratio = $1,975/$1,341 = 1.47

Therefore, the company's current ratio 1.47. And since it greater than 1, it implies the company will not have problems meeting its short-term debt obligation.