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? O Cash O Inventories O Accounts receivable Jing Foodstuffs Corporation Balance Sheet December 31" (Millions of dollars) Pellegrini Southern Jing Foodstuffs Corporation Corporation Pellegrini Southern Corporation Assets Liabilities Current assets Current liabilities Cash $4,879 $3,136 Accounts $0 $0 payable Accruals Accounts 1,785 1,148 1,076 0 receivable Inventories 5,236 3,366 Notes payable 5,737 6,096 $7,172 Total current $11,900 $7,650 $5,737 Total current liabilities assets Net fixed 8,765 7,013 Long-term bonds assets 9,350 9,350 Total debt $15,937 $12,750 Net plant and equipment Common equity Common stock $3,453 $2,763 1.487 Retained 1,860 Net fixed 8,765 Long-term bonds 7,013 assets 9,350 Net plant and equipment 9,350 Total debt $15,937 $12,750 $3,453 $2,763 Common equity Common stock Retained earnings 1,860 1,487 $5,313 $4,250 Total common equity Total assets $21,250 $17,000 Total liabilities $21,250 $17,000 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, the 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