Some common examples of short-term investments include CDs, money market accounts, high-yield savings accounts, government bonds, and Treasury bills. Usually, these investments are high-quality and highly liquid assets or investment vehicles.
Cash 15000
Short-term investments 5000
Accounts Receivable 8000
Inventory 20000
Other current assets 6000
Total current assets 54000
Current Ratio
Choose Numerator / Choose Denominator = Current Ratio
Current Assets / Current Liabilities = Current Ratio
54000 / 20000 = 2.7 to 1
2
Acid-Test ratio
Choose Numerator / Choose Denominator = Acid-Test ratio
Cash + Short-term investments + Current Receivables / Current Liabilities = Acid-Test ratio
15000 + 5000 + 8000 / 20000 = 1.4 to 1
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