Calculate joshs liquidity ratio

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Reference no: EM131970544

Liquidity ratio 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	$ $3,200
Marketable securities	1,000
Checking account	800
Credit card payables	1,200
?Short-term notes payable	900

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? Josh's liquidity ratio is ________ .

(Round to two decimal? places.)

PLEASE ANSWER BOTH QUESTIONS

Reference no: EM131970544

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