Superstore Electronics Reported the Following Figures in Its 2019 and 2018

question 121

Essay

Superstore Electronics reported the following figures in its 2019 and 2018 financial statements.
$$\begin{array} { | l | r | r | } \hline & 2019 & 2018 \\\hline \text { Cash } & \$ 38,500 & \$ 25,000 \\\hline \text { Cash Equivalents } & 3,000 & 2,000 \\\hline \text { Total Current } & & \\\text { Liabilities } & 33,200 & 30,000 \\\hline\end{array}$$ 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.

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Definitions:

Comprehensive Income

The total change in equity for a reporting period other than from transactions with owners, including all revenues, gains, expenses, and losses.

Dividends Per Share

The total amount of dividends declared by a company for each share of its stock, indicating the income investors receive from holding shares in the company.

Financial Leverage

The use of borrowed funds to increase one's investment potential, which can magnify both gains and losses.