airlux antarctica has current assets of $500 million, current liabilities of $400 million and a cash ratio of 0.25. how much cash and marketable securities does it hold? (enter your answer in millions rounded to 1 decimal place.)

In order to be ready for circumstances where they may need to act quickly, like seizing an acquisition opportunity that arises or paying contingent payments, businesses usually keep cash in their reserves.
A business will, however, invest some cash in short-term liquid securities rather than keeping all of it in its bank accounts, where there is no chance of earning interest.
In this manner, the business may generate returns on its cash rather than letting it stay idle.
The business can readily sell these securities if a sudden need for cash arises.
A group of assets classified as marketable securities is an illustration of a short-term investment product.

Cash ratio is a used to evaluate a company's ability to repay its current liabilities.

It is the most important ratio in evaluating liquidity. Cash ratio should be maintained minimum one. Mainly, creditors will use this ratio as a performance measure.

A has $400 million of current liabilities, $500 million of current assets and 0.25 cash ratio.

[tex]Cash ratio=\frac{cash+marketable securities}{current liabilities}[/tex]

0.25 = (Cash + Marketable securities) ÷ $400 Million

0.25 x $400 million = Cash + Marketable securities

Cash + Marketable securities = $100 million

So, The value of Cash and Marketable securities is $100million

To learn more about Marketable securities, refer to

https://brainly.com/question/15521056

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