2. Liquidity ratios A liquid asset can be converted to cash quickly without significantly impacting the asset's value. Which of the following asset classes is generally considered to be the most liquid? Inventories Cash Accounts receivable The most recent data from the annual balance sheets of Pellegrin Southern Corporation and Jing Foodstuffs Corporation are as follows: Jing Foodstuffs Corporation Balance Sheet December 31" (Millions of dollars) Pellegrini Southern Jing Foodstuffs Corporation Corporation Pellegrini Southern Corporation Liabilities Assets Current assets Current Cash 54,879 $3,136 $0 SO liabilities Accounts payable Accruals 1,785 1,148 1,076 0 Accounts receivable Inventories Total nurt 5,236 3,366 6,096 5,737 26 Notes payable Totalment a 2022 O BIL 511.900 $7,650 $7.172 $5,737 Total current assets Net fixed assets als Total current liabilities Long-term bonds Total debt 8,765 7,013 9,350 9,350 $15,937 $12.750 Net plant and equipment Common equity Common stock Retained camings $2,763 $3,453 1,860 1,487 $5,313 $1,250 Total common equity Total liabilities and equity Total assets $21,250 $17,000 $21,250 $17,000 Pelleanni Southern Corporation's current ratios and its quick ration and its quick ratio is ling 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 Dit a company's current liabilities are increasing faster than its current assets, the company's liquidity position is weakening Pellegrini Southem Corporation's current ratio is and its quick ratios and its quick ratio is ling Foodstufts 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 Il a company's current liabilities are increasing faster than its current assets, the company's liquidity position is weakening tra company has a quick ratio of less than I 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 Foodstutis Corporation An increase in the current ratio over time always means that the company's liquidity position is improving