Use the following Income Statement and Balance Sheet Information for 2018$2018$ to answer the question below. This is a Retail Company. All numbers are in Millions.

Income Statement 

Total Sales 226.6$226\mathrm{.}6$

Cost of Sales 158.3$158\mathrm{.}3$

Gross Profit 226.6−158.3$226\mathrm{.}6-158\mathrm{.}3$

Selling and Administrative Expenses 16.9$16\mathrm{.}9$

Research and Development 8.3$8\mathrm{.}3$

Depreciation and Amortization 2.9$2\mathrm{.}9$

Other Income 4.3$4\mathrm{.}3$

EBIT, Operating Profit 226.6−158.3−16.9−8.3−2.9+4.3$226\mathrm{.}6-158\mathrm{.}3-16\mathrm{.}9-8\mathrm{.}3-2\mathrm{.}9+4\mathrm{.}3$

Interest Expense 5.8$5\mathrm{.}8$

Pretax Income 226.6−158.3−16.9−8.3−2.9+4.3−5.8$226\mathrm{.}6-158\mathrm{.}3-16\mathrm{.}9-8\mathrm{.}3-2\mathrm{.}9+4\mathrm{.}3-5\mathrm{.}8$

Taxes (226.6−158.3−16.9−8.3−2.9+4.3−5.8)*0.30$(226\mathrm{.}6-158\mathrm{.}3-16\mathrm{.}9-8\mathrm{.}3-2\mathrm{.}9+4\mathrm{.}3-5\mathrm{.}8)*0\mathrm{.}30$

Net Income (226.6−158.3−16.9−8.3−2.9+4.3−5.8)*0.70$(226\mathrm{.}6-158\mathrm{.}3-16\mathrm{.}9-8\mathrm{.}3-2\mathrm{.}9+4\mathrm{.}3-5\mathrm{.}8)*0\mathrm{.}70$

Balance Sheet

Assets Liabilities

Cash 79.7$79\mathrm{.}7$ Accounts Payable 46.3$46\mathrm{.}3$

Accounts Receivable 47.6$47\mathrm{.}6$ Notes Payable/$/$Short term debt 1.5$1\mathrm{.}5$

Inventories 7.7$7\mathrm{.}7$

Total Current Assets 79.7+47.6+7.7$79\mathrm{.}7+47\mathrm{.}6+7\mathrm{.}7$ Total Current Liabilities 46.3+1.5$46\mathrm{.}3+1\mathrm{.}5$

Net property, plant and equipment 99.0$99\mathrm{.}0$ Long−$-$term debt 80.8$80\mathrm{.}8$

Total long−$-$term assets 99.0$99\mathrm{.}0$ Total long−$-$term debt liabilities 80.8$80\mathrm{.}8$

Total Liabilities 46.3+1.5+80.8$46\mathrm{.}3+1\mathrm{.}5+80\mathrm{.}8$

Stockholders' Equity ($($Total Equity)79.7+47.6+7.7+99.0−46.3−1.5−80.8$)79\mathrm{.}7+47\mathrm{.}6+7\mathrm{.}7+99\mathrm{.}0-46\mathrm{.}3-1\mathrm{.}5-80\mathrm{.}8$

Total Assets 79.7+47.6+7.7+99.0$79\mathrm{.}7+47\mathrm{.}6+7\mathrm{.}7+99\mathrm{.}0$ Total Liabilities and Stockholders' Equity 46.3+1.5+80.8+79.7+47.6+7.7+99.0−46.3−1.5−80.8$46\mathrm{.}3+1\mathrm{.}5+80\mathrm{.}8+79\mathrm{.}7+47\mathrm{.}6+7\mathrm{.}7+99\mathrm{.}0-46\mathrm{.}3-1\mathrm{.}5-80\mathrm{.}8$

What was the company's Current Ratio in 2018?

 

Answer rating: 100% (QA)

The Current Ratio is calculated by dividing Total Current Assets by Total Current Liabili... View the full answer