Airlux Antarctica has current assets of $460 million, current liabilities of $360 million and a cash ratio of 0

Accounting Feb 10, 2021

Airlux Antarctica has current assets of $460 million, current liabilities of $360 million and a cash ratio of 0.21. How much cash and marketable securities does it hold? (Enter your answer in millions rounded to 1 decimal place.)
Cash and marketable securities
r
million

Expert Solution

Computation of Cash and Marketable securities:

Cash ratio = Cash+ Cash Equivalents/ Current Liabilities

0.21 = Cash+ Cash Equivalents/360

Cash + Cash Equivalents = 360 * 0.21 = $75.60

Cash and Marketable securities $75.60 million

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