Phillips Company had the following financial data for the year ended December 31,2019. What is the cash ratio as of December 31,2019,for Phillips Company? (Round your answer to two decimal places. )
A)0.28
B)0.37
C)0.45
D)0.82

Question

Phillips Company had the following financial data for the year ended December 31,2019.  What is the cash ratio as of December 31,2019,for Phillips Company? (Round your answer to two decimal places. )
A)0.28 
B)0.37 
C)0.45 
D)0.82

Quizplus · Accepted Answer

D)Cash Ratio = (Cash + Cash Equivalents)/ Total Current Liabilities
Cash Ratio = ($42,000 + $80,000)/ $148,000
Cash Ratio = 0.82

Phillips Company Had the Following Financial Data for the Year