Slightly Used Goods has cash of $2,150, inventory of $28,470, fixed assets of $9,860, accounts payable of $11,900, and accounts receivable of $4,660. What is the cash ratio?
A) 0.08
B) 0.18
C) 0.32
D) 0.46
E) 0.51

Question

Quizplus · Accepted Answer

The cash ratio is calculated as cash divided by accounts payable. Cash is $2,150 and accounts payable is $11,900. Thus, the cash ratio is $2,150 / $11,900 = 0.18.

Slightly Used Goods Has Cash of $2,150, Inventory of $28,470