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1 . URL one ( 5 points ) : ( a ) For each of the five corporations compute the current ratio, which you compute
URL one points:
a For each of the five corporations compute the current ratio, which you compute by dividing the total current assets by the total current liabilities data is located on the balance sheet of each company. Please show your work. If you just show the answer, you will not receive any points.
b Then rank the five companies from one to five according to current position or solvency.
URL two points:
a Compute the acid test or quick ratio, which you compute by dividing the total current assets minus prepaid insurance & all the inventory accounts by the total current liabilities. Some corporations do not show prepaid insurance on their balance sheet. Because of the materiality concept, they record it as an expense rather than a current asset If any of the five listed corporations do this, then ignore it in your calculation of the ratio. Please show your work. If you just show the answer, you will not receive any points.
b Then rank your five companies according to current position or solvency.
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