The financial statements of Clearwater Furniture Company include the following items
2017 2016
Cash $54,500 $48,000
Short-term Investments 26,000 10,000
Net Accounts Receivable 97,000 106,000
Merchandise Inventory 156,000 145,000
Total Assets 525,000 546,000
Total Current Liabilities 230,000 213,000
Long-term Note Payable 60,000 55,000
What is 2017 cash ratio? (Round your answer to two decimal places)
A) 0.19
B) 0.10
C) 0.35
D) 0.24
D .D)
Cash ratio = (Cash + Cash equivalents) / Total current liabilities
Cash ratio - $54,500 / $230,000
Cash ratio = 0.24
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