Question

The fiscal 2018 balance sheet for Whole Foods Market reports the following data (in millions). What is the company’s current ratio?

Cash equivalents $351
Marketable Securities $379
Accounts receivable $242
Merchandise inventories $517
Current assets $1,975
Current liabilities $1,341

(A) 0.69
(B) 1.38
(C) 0.72
(D) 1.47
(E) None of the above

Answer 1

(D) 1.47

Step-by-step explanation:

The Current Ratio tells how many dollars of current asset are per dollar of current debts in a company. This gives an idea of the company`s ability to perform its debts.

Current Ratio = Current Asset / Current Liabilities

Current Ratio = 1,975 / 1,341

Current Ratio = 1,47