Given The Following Data:

Smith & Sons, Inc
Balance Sheet
December 31, 2016 and 2015
(In millions)	2016 ($)	2015 ($)
Assets
Current assets
Cash and cash equivalents	200	400
Accounts receivable	900	800
Inventory	500	650
Other Current assets	400	250
Total Current assets	2000	2100
Property, plant & equipment (net)	2,600	2,500
Other Assets	5,700	5,900
Total assets	10,300	10,500
Liabilities and Stockholder's Equity
Current Liabilities	3,000	2,900
Long-term liabilities	5,000	5,400
Total Liabilities	8,000	8,300
Stockholders' equity-common	2,300	2,200
Total Liabilities and Stockholders' Equity	10,300	10,500

Required:

Calculate the current ratio for Smith & Son Inc for 2015 and 2016.

Answer rating: 100% (QA)

The current ratio is a financial ratio that measures a companys ability to pay its shortterm liabili... View the full answer