Smith Electronics Reported the Following Figures in Its 2017 and 2016

question 138

Essay

Smith Electronics reported the following figures in its 2017 and 2016 financial statements.

$$\begin{array} { | l | r | r | } \hline & 2017 & 2016 \\\hline \text { Cash } & \$ 38,500 & \$ 25,000 \\\hline \text { Cash Equivalents } & 3,000 & 2,000 \\\hline \text { Total Current Liabilities } & 33,200 & 30,000 \\\hline\end{array}$$ Compute the cash ratio for 2017 and 2016.What does the cash ratio measure? Use this information to discuss the business performance of Smith Electronics.

---

Definitions:

Instinct Theory

The view that behaviors are motivated by instincts, which are innate tendencies or biological forces that determine human actions.

Inborn Patterns

Innate behaviors or responses that are genetically programmed and evident from birth.

Need for Affiliation

A psychological drive that compels individuals to seek out social interactions and relationships.

Birth Order

The sequence at which a person is born in their family, which is thought to have an impact on their personality and psychological development.