Horngren's Financial & Managerial Accounting, The Managerial Chapters, Student Value Edition (5th Edition)
Horngren's Financial & Managerial Accounting, The Managerial Chapters, Student Value Edition (5th Edition)
5th Edition
ISBN: 9780133851496
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Chapter 7, Problem 7.10SE
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 BB.

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Down Company Manufacturing has the following select financial data as of Decembe 31. Cash Cash Equivalents Accounts Receivable Total Current Liabilities What is the cash ratio? $20,000 4,000 3,000 30,000
Computing the cash ratio Smythe Banners reported the Following figures in its financial statements: Cash: 26,500 $ Cash equivalents: 5000 Total Current liabilities: 30,000 Compute the cash ratio for Smythe Banners.
Saxe Banners reported the following figures in its financial statements: Cash $ 25,000 Cash Equivalents Total Current Liabilities 33,000 40.000 Compute the cash ratio for Saxe Banners. Determine the formula, then calculate the cash ratio. (Enter the cash ratio to two decimal places, X.XX.) + )÷ Question Viewer = = Cash ratio

Chapter 7 Solutions

Horngren's Financial & Managerial Accounting, The Managerial Chapters, Student Value Edition (5th Edition)

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