The most recent data from the annual balance sheets of NAB Equipment Company and Jing Foodstuffs Inc, are as follows:
Balance Sheet December 31^(st ) (Millions of dollars)
N&B Equipment Company's current ratio is , and its quick ratio is : Jing Foodstuffs Inci's current ratio is , and its quick ratio is - Note: Round your values to four decimal places.
Which of the following statements are true? Check all that apply.
Jing Foodstuffs Inc. has a better ability to meet its short-term liabilities than NRB Equipment Company.
If a company's current liabilities are increasing faster than its current assets, the company's liquidity position is weakening.
An increase in the quick ratio over time usually means that the company's liquidity position is improving and that the company is managing its short-term assets well.
Compared to N&B Equipment Company, Jing Foodstuffs Inc. has less liquidity and a lower reliance on outside cash flow to finance its short-term obligations.
An increase in the current ratio over time always means that the company's liquidity position is improving.
The most recent data from the annual balance sheets of N&B Equipment Company and Jing Foodstuffs Inc.are as followis:
Balance Sheet December 31Millions of dollars) Jing Foodstuffs Jing Foodstuffs N&B Equipment Company Inc. Inc. Liabilities Current liabilities $369 Accounts payable $0 $574 135 Accruals 127 210
N&B Equipment Company
Assets
Current assets Cash
$0 0
Accounts receivable Inventories
Notes payable Total current
717
675
616 1,400
396
900
844
675
Total current
assets Net fixed assets Net plant and equipment
liabilities Long-term bonds Total debt
1,031 1,875
825
1,100
1,100
1,500
Common equity Common stack Retained earnings Total common
406 219 625
325 175
500
equity Total liabilities and
Total assets
2,500
2,000
2,500
2,000
equity
N&B Equipment Company's current ratio is and its quick ratio is its quick ratio is -Note:Round your values to four decimal places
Jing Foodstuffs Inc.s current ratio is
pue
Which of the following statements are true? Check all that apply.
Jing Foodstuffs Inc.has a better ability to meet its short-term liabilities than N&B Equipment Company
An increase in the quick ratio over time usually means that the company's liquidity position is improving and that the company is managing its short-term assets well.
Compared to N&B Equipment Company,Jing Foodstuffs Inc.has less liquidity and a lower reliance on outside cash flow to finance its short-term obligations. An increase in the current ratio over time always means that the company's liquidity position is improving