Balance Sheet December 31 SL (Millions of dollars) N&B Equipment Company Jing Foodstuffs Inc. Jing Foodstuffs Inc. N&B Equipment Company Assets Current assets Cash Liabilities Current liabilities Accounts payable Accruals $574 $369 $0 $0 210 135 127 0 Accounts receivable Inventories 616 396 717 675 1,400 900 844 675 Notes payable Total current liabilities Long-term bonds Total debt 1,031 Total current assets Net fixed assets Net plant and equipment 825 1,100 1,100 1,875 1,500 406 325 219 175 Common equity Common stock Retained earnings Total common equity Total liabilities and equity 625 500 Total assets 2,500 2,000 2,500 2,000 N&B Equipment Company's current ratio is Foodstuffs Inc.'s current ratio is values to four decimal places. and its quick ratio is and its quick ratio is ; Jing Note: Round your Which of the following statements are true? Check all that apply. Jing Foodstuffs Inc. has a better ability to meet its short-term liabilities than N&B Equipment Company. If a company's current liabilities are increasing faster than its current assets, the company's liquidity position is weakening. An increase in the quick ratio over time usually means that the company's liquidity position is improving and that the company is managing its short-term assets well. Compared to N&B Equipment Company, Jing Foodstuffs Inc. has less liquidity and a lower reliance on outside cash flow to finance its short-term obligations. An increase in the current ratio over time always means that the company's liquidity position is improving. One of the most important assumptions behind the calculation of the quick ratio is that the firm's accounts receivable be converted into cash within the time period for which credit was granted