Smith Automotive Parts had the following select financial data as of December 31, 2015: Cash $15,000 Cash Equivalents $3,000 Total Current Assets $40,000 Total Current Liabilities $30,000 What is Smith's cash ratio? A. 5.00 B. 0.60 C. 0.50 D. 0.45

Smith Automotive Parts had the following select financial data as of December 31, 2015: Cash $15,000 Cash Equivalents $3,000 Total Current Assets $40,000 Total Current Liabilities $30,000 What is Smith's cash ratio? A. 5.00 B. 0.60 C. 0.50 D. 0.45

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Smith Automotive Parts had the following select financial data as of December 31, 2015:

Cash $15,000

Cash Equivalents $3,000

Total Current Assets $40,000

Total Current Liabilities $30,000

What is Smith's cash ratio?

A. 5.00

B. 0.60

C. 0.50

D. 0.45

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