Island Cabin Rentals reported the following selected amounts in its post-closing trial balance as of December 31, 2024, and December 31, 2025. All accounts have normal balances. 

Requirements 

1. Calculate the cash ratio for the two years. Round to two decimal places. 

2. Did the company’s position improve or weaken? Explain your answer.

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Cash Cash Equivalents Accounts Receivable Supplies Merchandise Inventory Prepaid Insurance Equipment Accumulated Depreciation-Equipment Accounts Payable Utilities Payable Salaries Payable Unearned Revenue Common Stock Retained Earnings 2025 $ 7,800 2,760 960 300 10,500 1,080 18,000 2,400 960 276 1,440 1,050 32,160 3,114 2024 $ 7,350 2,380 1,680 497 13,300 1,120 21,000 2,100 1,680 350 1,540 910 37,520 3,227