In December $20182018,$ Apple had cash of $ $86\mathrm{.}43$$$86\mathrm{.}43$billion$,$ current assets of $ $140\mathrm{.}83$$$140\mathrm{.}83$billion$,$ and current liabilities of $ $108\mathrm{.}28$$$108\mathrm{.}28$ billion. It also had inventories of $ $4\mathrm{.}99$$$4\mathrm{.}99$ billion.

a$.$ What was$$ Apple's current$$ ratio?

b$.$ What was$$ Apple's quick$$ ratio?

c$.$ In January $20192019,$Hewlett$-$Packard had a quick ratio of $0\mathrm{.}550\mathrm{.}55$ and a current ratio of $0\mathrm{.}780\mathrm{.}78.$ What can you say about the asset liquidity of Apple relative to$$ Hewlett$-$Packard?

Question content area bottom

Part $1$

a$.$ What was$$ Apple's current$$ ratio?

$$Apple$\text{'}$s current ratio was $1\mathrm{.}301\mathrm{.}30.($Round to two decimal$$ places.$)$

Part $2$

b$.$ What was$$ Apple's quick$$ ratio?

$$Apple$\text{'}$s quick ratio was $1\mathrm{.}251\mathrm{.}25.($Round to two decimal$$ places.$)$

Part $3$

c$.$ In January $20192019,$Hewlett$-$Packard had a quick ratio of $0\mathrm{.}550\mathrm{.}55$ and a current ratio of $0\mathrm{.}780\mathrm{.}78.$ What can you say about the asset liquidity of Apple relative to$$ Hewlett$-$Packard? $($Select the best choice$$ below.$)$

A$.$

$$Apple$\text{'}$s lower current and quick ratios demonstrate that it has much higher asset liquidity than does$$ Hewlett$-$Packard. This means that in a$$ pinch, Apple has more liquidity to draw on than does$$ Hewlett$-$Packard.

B$.$

$$Apple$\text{'}$s higher current and quick ratios demonstrate that it has much lower asset liquidity than does$$ Hewlett$-$Packard. This means that in a$$ pinch, Apple has more liquidity to draw on than does$$ Hewlett$-$Packard.

C$.$

$$Apple$\text{'}$s higher current and quick ratios demonstrate that it has much higher asset liquidity than does$$ Hewlett$-$Packard. This means that in a$$ pinch, Apple has more liquidity to draw on than does$$ Hewlett$-$Packard.

D$.$

$$Apple$\text{'}$s higher current and quick ratios demonstrate that it has much higher asset liquidity than does$$ Hewlett$-$Packard. This means that in a$$ pinch, Apple has less liquidity to draw on than does$$ Hewlett$-$Packard.