Superstore Electronics reported the following figures in its 2019 and 2018 financial statements.
Compute the cash ratio for 2019 and 2018.What does the cash ratio measure? Use this information to discuss the business performance of Superstore Electronics.
Definitions:
Current Assets
Assets that are expected to be converted into cash, sold, or consumed within one year or a business cycle, whichever is longer.
Long-Term Liabilities
Obligations or debts a company is responsible for paying beyond one year from the date of the balance sheet.
Current Asset
Assets that are expected to be converted into cash, sold, or consumed within a year or within the operating cycle of the business, whichever is longer.
Current Liability
A company's debts or obligations that are due within one year, appearing on the company's balance sheet and including short-term borrowing, accounts payable, and other liabilities.
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