The financial statements for Stephens' Electric Company include the following items:

Compute the 2018 cash ratio.(Round your answer to two decimal places. )

Name: The financial statements for Stephens' Electric Company include the following items: Compute the 2018 cash ratio.(Round your answer to two decimal places. )
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Question

The financial statements for Stephens' Electric Company include the following items:

Compute the 2018 cash ratio.(Round your answer to two decimal places. )

Quizplus · Accepted Answer

A)Cash ratio = (Cash + Cash equivalents)/ Total current liabilities
Cash ratio = ($51,000 + $12,000)/ ($42,000 + $19,000)
Cash ratio = $63,000 / $61,000
Cash ratio = 1.03

The Financial Statements for Stephens' Electric Company Include the Following