The following accounting information exists for Collie and Spaniel companies:

Required

a. Identify the current assets and current liabilities and compute the current ratio for each company.

b. Assuming that all assets and liabilities are listed here, compute the debt-to-assets ratios for each company.

c. Determine which company has the greater financial risk in both the short term and the long term.

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Collie Spanlel Cash $ 12,000 $ 15,000 Wages payable Merchandise Inventory Building 10,000 20,000 90,000 12,000 55,000 80,000 Accounts receivable 22,000 80,000 35,000 25,000 220,000 25,000 100,000 40,000 35,000 250,000 230,000 Long-term notes payable Land Accounts payable Sales revenue Expenses 190,000