b. Cash ratio Begin by selecting the correct formula. Cash ratio = (Cash + Cash
ID: 2410663 • Letter: B
Question
b. Cash ratio
Begin by selecting the correct formula.
Cash ratio
=
(Cash + Cash equivalents) / Total current liabilities
?Now, compute the ratio for both companies for both years. ?(Round your answers to two decimal? places, X.XX.)
Ratio
Year
WC
BLV
Cash
2019
Cash
2018
More
Less
Cash ratio
=
(Cash + Cash equivalents) / Total current liabilities
The Water Company Comparative Financial Statements Years Ended December 31 2018 Beguiling Life Vests Comparative Financial Statements Years Ended December 31 2018 2019 2017 2019 2017 Income Statement Net Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Operating Income Interest Expense Income before Income Tax $ 430,642 S 425,350 258,145 256,817 172,497 168,533 151,215 17,318 785 16,533 $410,830 $ 383,400 299,010 280,780 111,820 102,620 70,950 33,44031,670 2,910 30,670 28,760 153,000 78,380 19,497 830 2,770 18,667Explanation / Answer
Ratio Year WC BLV Cash 2019 0.99 0.72 Cash 2018 1.17 0.62 Ratio Year WC BLV Cash 2019 =68800/69530 =65749/90850 Cash 2018 =70172/60220 =55580/90100
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