The Financial Statements for Stephens' Electric Company Include the Following

Multiple Choice

The financial statements for Stephens' Electric Company include the following items: $$\begin{array} { | l | r | r | } \hline & { 2019 } & { 2018 } \\\hline \text { Cash } & \$ 59,000 & \$ 56,000 \\\hline \text { Cash Equivalents } & 21,500 & 18,000 \\\hline \text { Net Accounts Receivable } & 25,000 & 36,000 \\\hline \text { Merchandise Inventory } & 78,000 & 68,000 \\\hline \text { Total Assets } & 526,000 & 549,000 \\\hline \text { Accounts Payable } & 41,500 & 42,000 \\\hline \text { Salaries Payable } & 17,000 & 17,000 \\\hline \text { Long-term Note Payable } & 56,000 & 52,000 \\\hline \text { Income From Operations } & 134,500 & 112,000 \\\hline \text { Interest Expense } & 35,000 & 26,000 \\\hline\end{array}$$ Compute the 2018 cash ratio.(Round your answer to two decimal places.)

A) 1.25
B) 1.38
C) 1.76
D) 0.67