Presented here is information for two companies in the same industry: Rita Corporation and Les Corporation:

\section*{Instructions}
Using the cash-based ratios presented in this chapter, compare the

(a) liquidity,

(b) solvency, and

(c) profitability of the two companies.

Transcribed Image Text:

Cash provided by operations Average current liabilities. Average total liabilitics Net income Sales Rita Les Corporation Corporation $200,000 $200,000 50,000 100,000 200,000 250,000 200,000 200,000 400,000 800,000