The financial statements for Stephens' Electric Company include the following items: 2019 2018 Cash $54,000 $54,000 Cash Equivalents 24,500 16,000 Net Accounts Receivable 30,000 30,000 Merchandise Inventory 76,000 64,000 Total Assets 527,000 545,000 Accounts Payable 42,500 35,000 Salaries Payable 16,000 13,000 Long−term Note Payable 61,000 55,000 Income From Operations 125,500 113,000 Interest Expense 26,000 30,000 -Compute the 2018 cash ratio. (Round your answer to two decimal places.)
The financial statements for Stephens' Electric Company include the following items: 2019 2018 Cash $54,000 $54,000 Cash Equivalents 24,500 16,000 Net Accounts Receivable 30,000 30,000 Merchandise Inventory 76,000 64,000 Total Assets 527,000 545,000 Accounts Payable 42,500 35,000 Salaries Payable 16,000 13,000 Long−term Note Payable 61,000 55,000 Income From Operations 125,500 113,000 Interest Expense 26,000 30,000 -Compute the 2018 cash ratio. (Round your answer to two decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The financial statements for Stephens' Electric Company include the following items:
|
2019 |
2018 |
|
|
Cash |
$54,000 |
$54,000 |
|
Cash Equivalents |
24,500 |
16,000 |
|
Net |
30,000 |
30,000 |
|
Merchandise Inventory |
76,000 |
64,000 |
|
Total Assets |
527,000 |
545,000 |
|
Accounts Payable |
42,500 |
35,000 |
|
Salaries Payable |
16,000 |
13,000 |
|
Long−term Note Payable |
61,000 |
55,000 |
|
Income From Operations |
125,500 |
113,000 |
|
Interest Expense |
26,000 |
30,000 |
-Compute the 2018 cash ratio. (Round your answer to two decimal places.)
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