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Also which of the following asset classes is generally considered to be the most liquid? -Cash -Accounts receivable -Inventories The most recent data from the
Also which of the following asset classes is generally considered to be the most liquid?
-Cash
-Accounts receivable
-Inventories
The most recent data from the annual balance sheets of Fitcom Corporation and LeBron Sports Equipment Inc. are as follows Balance Sheet December 31st (Millions of dollars) LeBron Fitcom LeBron Fitcom Sports Corporation Sports Corporation Equipment Inc. Equipment Inc. Liabilities Current assets Current liabilities Cash Accounts receivable Inventories $2,583 945 2772 6,300 $1,660 Accounts payable $0 570 3,227 797 4,640 ,437 $0 508 Accruals 1,782 Notes payable 4,050 Total current liabilities Total current assets Net fixed assets Net plant and equipment 3,037 3,037 3,713 6,750 Long-berm bonds 4,950 4,95D Total debt Common equity 1,828 985 2,813 11,250 1,463 787 2,250 9,O00 Common stock Retained eamings Total common equity Total liabilities and equity Total assets 11,250 9,00D Fitoom Corporation's quick ratio is , and its current ratio is LeBron Sports Equipment Inc.'s quick ratio is and its current ratio is which of the following statements are true? Check all that apply Fitcom Corporation has less liquidity but also a greater reliance on outside cash flow to finance its short-term obligations than LeBron Sports Equipment Inc.. If a company's current liabilities are increasing faster than its current assets, the company's liquidity pasition is weakening. An increase in the quick ratio overtime usually means that the oom pany's liquidity position is improving and that the company is managing its short-term assets well. Fitcom Corporation has a better ability to meet its short-term liabilities than LeBron Sports Equipment Inc. An increase in the current ratio over time always means that the oompany's liquidity position is improvingStep by Step Solution
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