The most appropriate ratio to determine if a company has enough short-term assets to cover its short-term liabilities is the Current Ratio.

1. Formula: Current Ratio = Total Current Assets / Total Current Liabilities.
2. Calculation:

• Total Current Assets = $137,605
• Total Current Liabilities = $106,220
• Ratio = $137,605 / $106,220 = 1.30 (rounded to two decimal places).

This ratio of 1.30 (or 1.30:1) signifies that Coffee Time has $1.30 in current assets for every $1.00 of current liabilities. Since this value is greater than 1.0, it indicates the company does appear to have enough current assets to cover its short-term liabilities.

Massachusetts Institute of Technology (MIT) OpenCourseWare. (2016). Firm Evaluation & Financial Statement Analysis. Lecture 5 Slides. MIT11_437F16_Lec5.pdf.

Reference: Page 7, Section "Shortterm Liquidity and Cash Needs."

Content: Defines the Current Ratio as: "Current Assets/Current Liabilities."

Birla Institute of Technology and Science (BITS), Pilani. (n.d.). Ratio Analysis. Courseware document.

Reference: Page 1, Section "Liquidity ratios."

Content: Defines the Current Ratio as the relationship between current assets and current liabilities (Current Assets / Current Liabilities). It states, "A relatively high current ratio is an indication that the firm is liquid and has the ability to pay its current obligations in time..."

Kasmir. (2014). The Effect of Current Ratio and Debt to Asset Ratio on Net Profit Margin and Stock Prices. As cited in Jurnal APLIKASI MANAJEMEN, Vol 12, No. 4.

Reference: Page 714 (as referenced in the 2014 journal).

Content: Defines the Current Ratio (CR) as "a measuring tool to see the company's ability to meet its current liabilities that are due." This confirms the ratio's purpose in assessing the coverage of liabilities. (DOI: http://dx.doi.org/10.18202/jam23026332.12.4.11)