Josh Smith has compiled some of his personal financial data in order to determine his liquidity position The data are as follows Account Amount Cash $3,190 Marketable securities 1,030 Checking account 840 Credit card payables 1,280 Short term notes payable 910 a Calculate Josh's liquidity ratio b Several of Josh's friends have told him that they have liquidity ratios of about 1 8 How would you analyze Josh's liquidity relative to his friends

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Josh Smith has compiled some of his personal financial data in order to determine his liquidity position. The data are as follows: Account Amount Cash

Josh Smith has compiled some of his personal financial data in order to determine his liquidity position. The data are as follows:

Account	Amount
Cash	$3,190
Marketable securities	1,030
Checking account	840
Credit card payables	1,280
Short-term notes payable	910

a. Calculate Josh's liquidity ratio.

b. Several of Josh's friends have told him that they have liquidity ratios of about 1.8. How would you analyze Josh's liquidity relative to his friends?

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