Superstore Electronics reported the following figures in its 2019 and 2018 financial statements.
$$\begin{array} { | l | r | r | }
\hline & { \mathbf { 2 0 1 9 } } & { \mathbf { 2 0 1 8 } } \
\hline \text { Cash } & \$ 38,500 & \$ 25,000 \
\hline \text { Cash Equivalents } & 3,000 & 2,000 \
\hline \text { Total Current Liabilities } & 33,200 & 30,000 \
\hline
\end{array}$$ Compute the cash ratio for 2019 and 2018. What does the cash ratio measure? Use this information to discuss the business performance of Superstore Electronics.

Question

Superstore Electronics reported the following figures in its 2019 and 2018 financial statements.
 $$\begin{array} { | l | r | r | } 
\hline &  { \mathbf { 2 0 1 9 } } &  { \mathbf { 2 0 1 8 } } \
\hline \text { Cash } & \$ 38,500 & \$ 25,000 \
\hline \text { Cash Equivalents } & 3,000 & 2,000 \
\hline \text { Total Current Liabilities } & 33,200 & 30,000 \
\hline
\end{array}$$ Compute the cash ratio for 2019 and 2018. What does the cash ratio measure? Use this information to discuss the business performance of Superstore Electronics.

Quizplus · Accepted Answer

The Answer of Superstore Electronics reported the following figures in its 2019 and 2018 financial statements.
 $$\begin{array} { | l | r | r | } 
\hline &  { \mathbf { 2 0 1 9 } } &  { \mathbf { 2 0 1 8 } } \
\hline \text { Cash } & \$ 38,500 & \$ 25,000 \
\hline \text { Cash Equivalents } & 3,000 & 2,000 \
\hline \text { Total Current Liabilities } & 33,200 & 30,000 \
\hline
\end{array}$$ Compute the cash ratio for 2019 and 2018. What does the cash ratio measure? Use this information to discuss the business performance of Superstore Electronics.

Superstore Electronics Reported the Following Figures in Its 2019 and 2018