Answer:
The ratio of cash to non-cash assets are;
0.22 for Tuohy Incorporated
0.16 for Oher Corporation
Explanation:
The cash account forms part of the total assets as it is a part of the current assets added to non current assets to get the total asset.
As such, it will be deducted from the total assets given to get the amount of non-cash assets.
Given for Tuohy Incorporated;
Cash = $4,200
Total assets = $23,400
Non cash assets = $23,400 - $4,200 = $19,200
Ratio of cash to non cash assets = $4,200/$19,200 = 0.22
For Oher Corporation
Cash = $3,500
Total assets = $25,700
Non cash assets = $25,700 - $3,500 = $22,200
Ratio of cash to non cash assets = $3,500/$22,200 = 0.16
