Ch 04: Assignment - Analysis of Financial Statements Balance Sheet December 31" (Millions of dollars) Scramouche Opera N&B Equipment Scramouche Opera Company Company Company N&B Equipment Company Assets Llabilities Current assets Current liabilities Cash $861 $553 Accounts $0 $0 payable Accruals Accounts 315 203 190 0 924 594 1,075 1,012 receivable Inventories Total current assets Net fixed assets $2,100 $1,350 Notes payable Total current liabilities $1,265 $1,012 1,547 1,238 Long-term bonds 1,650 1,650 Total debt $2,812 $2,250 Net plant and equipment Net fixed assets 1,547 1,238 Long-term bonds Total debt 1,650 1,650 $2,812 Net plant and equipment $2,250 $610 $488 328 262 Common equity Common stock Retained earnings Total common equity Total liabilities and equity $938 $750 Total assets $3,750 $3,000 $3,750 $3,000 and its current ratio is Scramouche Opera Company's quick ratio is N&B Equipment Company's quick ratio is and its current ratio is and its current ratio is ; Scramouche Opera Company's quick ratio is N&B Equipment Company's quick ratio is and its current ratio is Which of the following statements are true? Check all that apply. ON&B Equipment Company has less liquidity but also a greater reliance on outside cash flow to finance its short-term obligations than Scramouche Opera Company. A current ratio of 1 indicates that the book value of the company's current assets is equal to the book value of its current liabilities 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. ON&B Equipment Company has a better ability to meet its short-term liabilities than Scramouche Opera Company An increase in the current ratio over time always means that the company's liquidity position is improving