Question

To achieve a current ratio of 1.50, how much cash must Intel use specifically? Enter your answer in million.

a) $1.50 million
b) $2.25 million
c) $3.00 million
d) $4.50 million

Answer 1

To achieve a current ratio of 1.50, we need to calculate the amount of cash specifically that Intel must use. None of the options provided can be confirmed as the correct answer.

Step-by-step explanation:

To achieve a current ratio of 1.50, we need to calculate the amount of cash specifically that Intel must use.

The current ratio is calculated by dividing current assets by current liabilities.

Since cash is a current asset, we can set up the equation as follows:

Cash / Current Liabilities = 1.50

We can rearrange the equation to solve for the cash:

Cash = 1.50 * Current Liabilities

Given that the current liabilities are not provided in the question, we cannot determine the exact amount of cash Intel must use.

Therefore, none of the options provided (a) $1.50 million, (b) $2.25 million, (c) $3.00 million, or (d) $4.50 million) can be confirmed as the correct answer.