Use the follwing Financial statements for problems 1-5
JW, Inc: Income Statement			2016		2015
Sales			$5,700.00		$5,050.00
CGS			$(4,760.00)		$(4,040.00)
Gross Profit			$1,140.00		$1,010.00
Operating Expenses			$(500.00)		$420.00
Depreciation			$(27.00)		$26.00
EBIT			$613.00		$394.00
Interest Expense			$35.00		$30.00
EBT			$578.00		$364.00
Taxes			$(231.20)		$145.60
NI			$346.80		$218.40
Dividends			$-		$-
RE			$346.80		$218.40
JW, Inc Balance Sheet			2016		2015
Cash & Equivalents			$714.80		$120.00
Accounts Receivable			$500.00		$500.00
Inventory			$300.00		$340.00
Total Current Assets			$1,514.80		$960.00
Fixed Asets			$660.00		$800.00
Accumulated Depreciation			$(227.00)		$(200.00)
Net Fixed Assets			$433.00		$600.00
Total Assets			$1,947.80		$1,560.00
Accounts Payable			$320.00		$300.00
Short-Term Notes Payable			$40.00		$50.00
Accurals			$11.00		$10.00
Total Current Liabilities			$371.00		$360.00
Long-Term Debt			$780.00		$750.00
Total Liabilities			$1,151.00		$1,110.00
Common Stock			$120.00		$120.00
Retained Earnings			$676.80		$330.00
Total Shareholders Equity			$796.80		$450.00
Liabilities and Shareholders Equilty			$1,947.80		$1,560.00

In an interview on CNBC, a major shareholder of JWs common stock (a known activist investor) stated that JWs management is holding too much cash and that some of this liquidity should be reinvested in the form. Consequently, the CEO will lower the Cash Ratio by using cash and equivalents to purchase operating assets (i.e. the firms total asset base will not change). What level of cash and equivalents is required to generate the following values for the Cash Ratio?

a.20%

b.15%

c.10%

d.5%