Begin by selecting the formula to compute the cash ratio.

Cash ratio = (Cash + Cash equivalents) / Total current liabilities

Now, compute the cash ratios for 2018 and 2017.

(Round your answers to two decimal places, X.XX.)

2018 2017

Cash $56,000 $52,000

Short-term Investments 32,000 0

Net Accounts Receivables 146,000 120,000

Merchandise Inventory 227,000 267,000

Total Assets 555,000 535,000

Total Current Liabilities 275,000 182,000

Long-term Note Payable 48,000 62,000

Income from Operations 180,000 163,000

Interest Expense 44,000 39,000