HORNGREN'S M&F ACCT LL/W TCC CODE >IC<
HORNGREN'S M&F ACCT LL/W TCC CODE >IC<
6th Edition
ISBN: 9781323791950
Author: MILLER-NOBLES
Publisher: PEARSON
Question
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Chapter 7, Problem 7.11SE
To determine

Cash ratio: Cash ratio is a financial ratio which measures the liquidity of a company. It is determined mainly to know the ability of the company towards paying the current liabilities from the available cash and cash equivalents.

Formula:

Cash ratio=Cash + Cash equivalentsTotal current liabilities

To compute: The cash ratio for Company SB.

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