The Data of Graham Brothers Company for Two Years Are

question 228

Multiple Choice

The data of Graham Brothers Company for two years are given below. $$\begin{array} { | l | r | r | } \hline & 2018 & 2019 \\\hline \text { Cash and cash } & & \\\text { equivalents } & \$ 5,300 & \$ 12,000 \\\hline \text { Total current liabilities } & 24,000 & 31,000 \\\hline\end{array}$$ Based on the above information,which of the following statements is TRUE?

• A) Cash ratio has increased from 0.02 in 2018 to 0.03 in 2019.
• B) Cash ratio has increased from 0.05 in 2018 to 0.08 in 2019.
• C) Cash ratio has increased from 0.387 in 2018 to 0.221 in 2019.
• D) Cash ratio has increased from 0.221 in 2018 to 0.387 in 2019.

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