Phillips, Inc What Is the Cash Ratio as of December 31, 2019

question 218

Multiple Choice

Phillips, Inc. had the following financial data for the year ended December 31, 2019. $$\begin{array} { | l | r | } \hline \text { Cash } & \$ 44,000 \\\hline \text { Cash equivalents } & 79,000 \\\hline \text { Long term investments } & 55,000 \\\hline \text { Total current liabilities } & 145,000 \\\hline\end{array}$$ What is the cash ratio as of December 31, 2019, for Phillips, Inc.? (Round your answer to two decimal
Places.)

• A) 0.30
• B) 0.38
• C) 0.49
• D) 0.85

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Definitions:

Capital Contributions

Financial investments made by owners or shareholders into a company, enhancing its equity.

Annual Partnership Income

The total income generated by a partnership over a one-year period, distributed among the partners according to the partnership agreement.