In December 2015, Apple had cash of $38.54 billion, current assets of $75.

86
billion, and current liabilities of $76.58 billion. It also had inventories of $2.45 billion.

a. What was Apple's current ratio?

b. What was Apple's quick ratio?

c. In January 2016, Hewlett-Packard had a quick ratio of 0.66 and a current ratio of 0.90.
What can you say about the asset liquidity of Apple relative toHewlett-Packard?

a. What was Apple's current ratio?

Apple's current ratio was

. 99 .
(Round to two decimal places.)

b. What was Apple's quick ratio?

Apple's quick ratio was

. 96 .
(Round to two decimal places.)

c. In January 2016, Hewlett-Packard had a quick ratio of

0.66 and a current ratio of 0.90
What can you say about the asset liquidity of Apple relative toHewlett-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 less liquidity to draw on than
does Hewlett-Packard.

B.
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.

C.
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.

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 more liquidity to draw
on than does Hewlett-Packard.

Local Co. has sales of $10.8 million and cost of sales of $ 5.6 million. Its selling, general and
administrative expenses are $510,000 and its research and development is
$ 1.4 million. It has annual depreciation charges of $ 1.2million and a tax rate of 35 %

a. What is Local's gross margin?

b. What is Local's operating margin?
c. What is Local's net profita. What is Local's gross margin?

Local's gross margin is

48.1
(Round to one decimal place.)

b. What is Local's operating margin?

Local's operating margin is

19.4 .
(Round to one decimal place.)

c. What is Local's net profit margin?

Local's net profit margin is

12.58
(Round to two decimal places.)