2. Liquidity ratios A liquid asset can be converted quickly to cash with little sacrifice in its value. Which of the following asset classes is generally considered to be the least liquid? O Treasury bills O Real estate O Money market instruments The most recent data from the annual balance sheets of Pellegrini Southern Corporation and Jing Foodstuffs Corporation are as follows: Jing Foodstuffs Corporation Balance Sheet December 3154 (Millions of dollars) Pellegrini Southern Jing Foodstuffs Corporation Corporation Pellegrini Southern Corporation Assets Liabilities Current assets Current liabilities Cash $574 $369 Accounts $0 $0 payable Accounts 210 135 Accruals 127 0 receivable Inventories 616 396 Notes payable 717 675 Total current $1,400 $900 Total current $844 $675 assets liabilities 1,031 825 Net fixed assets Long-term bonds 1,100 1,100 Total debt $1,875 $1,500 Net plant and equipment Common equity Common stock $406 $325 Retained 219 175 earnings Total common $625 $500 equity Total assets $2,500 $2,000 Total liabilities $2,500 $2,000 and equity Pellegrini Southern Corporation's current ratio is , and its quick ratio is , and its quick ratio is Jing Foodstuffs Corporation's current ratio is Note: Round your values to four decimal places. Which of the following statements are true? Check all that apply. Pellegrini Southern Corporation has less liquidity but also a greater reliance on outside cash flow to finance its short-term obligations than Jing Foodstuffs Corporation. If a company's current liabilities are increasing faster than its current assets, the company's liquidity position is weakening. If a company has a quick ratio of less than 1 but a current ratio of more than 1 and if the difference between the two ratios is large, then the company depends heavily on the sale of its inventory to meet its short-term obligations. Pellegrini Southern Corporation has a better ability to meet its short-term liabilities than Jing Foodstuffs Corporation. An increase in the current ratio over time always means that the company's liquidity position is improving