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2. Liquidity ratios Aa Aa Most firms borrow money to finance some of their assets, and most will choose to borrow some long-term funds and
2. Liquidity ratios Aa Aa Most firms borrow money to finance some of their assets, and most will choose to borrow some long-term funds and some short-term funds. Which group of lenders would put greater emphasis on a firm's liquidity ratio when evaluating a potential borrower? O Long-term lenders Short-term lenders The most recent data from the annual balance sheets of Pellegrini Southern Inc. and LeBron Sports Equipment Inc. are as follows Balance Sheet December 31st (Millions of dollars) LeBron Sports Equipment Inc. Pellegrini Southern Inc. LeBron Sports Equipment Inc. Pellegrini Southern Inc. Assets Liabilities Current assets Current liabilities $5,166 1,890 5,544 12,600 $3,321 1,215 3,564 8,100 $0 1,139 6,455 7,594 9,281 16,875 $0 Cash Accounts receivable Inventories Accounts payable Accruals Notes payable Total current assets Net fixed assets Net plant and equipment 6,075 6,075 7,425 13,500 Total current liabilities Long-term bonds 9,900 9,900 Total debt Common equity 3,656 1,969 5,625 22,500 2,925 1,575 4,500 18,000 Common stock Retained earnings Total common equity Total assets 22,500 18,000Total liabilities and equity Enter the values of the current and quick ratios for Pellegrini Southern Inc. and LeBron Sports Equipment Inc.: Ratio Pellegrini LeBron Sports Southern Inc. Equipment Inc Current Quick
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