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:

Major Depression

A mood disorder characterized by persistent feelings of sadness, loss of interest, and other emotional and physical symptoms that impair daily functioning.

Rapid Transcranial Magnetic Stimulation

A non-invasive procedure that uses magnetic fields to stimulate nerve cells in the brain to improve symptoms of depression.

Electroconvulsive Shock Therapy

A method of treating psychiatric illnesses by inducing seizures in individuals with electrical impulses to improve mental health.

Positron Emission Tomography

A nuclear medicine functional imaging technique that produces a three-dimensional image of functional processes in the body.