1)In December 2015, Apple had cash of $37.87 billion, current assets of $76.68 billion, and current liabilities of

Question

1)In December 2015, Apple had cash of $37.87 billion, current assets of $76.68 billion, and current liabilities of $75.79 billion. It also had inventories of $2.45 billion. a. What was Apple's current ratio? b. What was Apple's quick ratio? c. In January 2016, Hewlett-Packard had a quick ratio of 0.66 and a current ratio of 0.90. What can you say about the asset liquidity of Apple relative to Hewlett-Packard? a. What was Apple's current ratio? Apple's current ratio was. 2)JPJ Corp has sales of $1.46 million, accounts receivable of $49,000, total assets of $5.21 million (of which $3.15 million are fixed assets), inventory of $148,000, and cost of goods sold of $600,000. What is JPJ's accounts receivable days? Fixed asset turnover? Total asset turnover? Inventory turnover? What is JPJ's accounts receivable days? JPJ's accounts receivable days are days. 3) A relevant cash flow can best be described as... a cash flow that is generated from a sale but not from a cost. The difference

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1) CURRENT RATIO = CURRENT ASSET/CURRENT LIABILITY CA 76.68 $ MIILION CL 75.79 $ MIILION CR = 76.68 75.79 CR 1.01 B. Quick ratio is calculated by dividing liquid current assets by total current liabilities. Liquid current assets include cash, marketable securities and receivables. QUICK RATIO = Cash+Marketable Securities+ Receivables CURRENT LIABILITY OR QUICK RATIO = CURRENT ASSET- INVENTORIES- PREPAYMENT CURRENT LIABILITY CA 76.68 $ MIILION CL 75.79 $ MIILION CASH 37.87 $ MIILION INVENTORIES 2.45 $ MIILION QUICK RATIO = (76.68-2.45)/75.79 QUICK RATIO = 0.98 2) Sales (in Mn $) 1.46 Account receivable (in $) 49,000.00 Total Assets (in Mn $) 5.21 Fixed assets (in Mn $) 3.15 Inventory (in $) 148,000.00 Cost of goods sold (in $) 600,000.00 Accounts receivable days = Accounts receivable / Sales x no. of days Accounts receivable days = 49000 / 1460000 x 365 Accounts receivable days = 12.25 days Fixed asset turnover = Sales / Fixed Assets Fixed asset turnover = 1460000 / 3150000 Fixed asset turnover = 0.46 Total asset turnover = Sales / Total assets Total asset turnover = 1460000 / 5210000 Total asset turnover = 0.28 Inventory turnover = Cost of goods sold / Inventory Inventory turnover = 600000 / 148000 Inventory turnover = 4.05 3) 1. Option, the difference between a firm's future cash flow with and without the project [ Incremental cash flows are relevant while judging a project] 2. Option, financing costs [ Financing costs are not relevant while considering cash flows]

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1)In December 2015, Apple had cash of $37

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CURRENT RATIO = CURRENT ASSET/CURRENT LIABILITY

CA	76.68	$ MIILION
CL	75.79	$ MIILION

CR	=	76.68
		75.79

CR	1.01

QUICK RATIO	=	Cash+Marketable Securities+ Receivables
			CURRENT LIABILITY

QUICK RATIO	=	CURRENT ASSET- INVENTORIES- PREPAYMENT
			CURRENT LIABILITY

Sales (in Mn $)	1.46
Account receivable (in $)	49,000.00
Total Assets (in Mn $)	5.21
Fixed assets (in Mn $)	3.15
Inventory (in $)	148,000.00
Cost of goods sold (in $)	600,000.00