Question 4 Suppose the following selected condensed data are taken from a recent

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Question 4 Suppose the following selected condensed data are taken from a recent balance sheet of Bob Evans Farms (in millions of dollars) Cash Accounts receivable Inventory Other current assets Total current assets Total current liabilities 31.9 21.0 28.1 23.0 104.0 $200.0 Compute working capital and the current ratio.(For working capital, enter answer in millions. If answer is negative enter it with a negative sign preceding the number eg.-15.2 or in parentheses eg. (15.2). Round Current Ratio to 2 decimal places, eg. 0.78:1.) Working capital Current ratio

Explanation / Answer

Working capital = Current assets-Current liabilities

= 104-200

Working capital = -$96 millions

Current ratio = Current assets/Current liabilities

= 104/200

Current ratio = 0.52:1

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