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

Cash ratio = (Cash + Cash equivalents)/ Total current liabilities
Cash ratio = ($56,000 + $18,000)/ ($42,000 + $17,000)
Cash ratio = $74,000 / $59,000
Cash ratio = 1.25

The Financial Statements for Stephens' Electric Company Include the Following