In December

2018,

Apple had cash of

$86.43

billion, current assets of

$140.83

billion, and current liabilities of

$108.28

billion. It also had inventories of

$4.99

billion.

a. What was Apple's current ratio?

b. What was Apple's quick ratio?

c. In January

2019,

Hewlett-Packard had a quick ratio of

0.55

and a current ratio of

0.78.

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's current ratio was

enter your response here.

(Round to two decimal places.)

Part 2

b. What was Apple's quick ratio?

Apple's quick ratio was

enter your response here.

(Round to two decimal places.)

Part 3

c. In January

2019,

Hewlett-Packard had a quick ratio of

0.55

and a current ratio of

0.78.

What can you say about the asset liquidity of Apple relative to Hewlett-Packard? (Select the best choice below.)

A.

Apple'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.

B.

Apple'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'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.

D.

Apple'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.