The Fingertips Company Had the Following Financial Data for the Year

question 93

Multiple Choice

The Fingertips Company had the following financial data for the year ended December 31, 2015: $$\begin{array} { | l | r |} \hline \text { Cash } & \$ 45,000 \\\hline \text { Cash equivalents } & 80,000 \\\hline \text { Long term investments } & 60,000 \\\hline \text { Total current liabilities } & 150,000 \\\hline\end{array}$$ What is the cash ratio as of December 31, 2015, for Fingertips Company?

• A) 0.30
• B) 0.40
• C) 0.53
• D) 0.83

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Definitions:

Firms' Revenues

The total income generated by businesses from selling their goods or services before any expenses are deducted.

Personal Savings

The portion of an individual’s income that is not spent on consumption and is set aside for future use, typically in a savings account or investment.

Marginal Cost

The increase in cost that arises from producing one additional unit of a product or service.

R&D Financing

The process of funding research and development activities, typically involving significant investment in innovation and technology to spur growth and competitive advantage.