Chapter 2 Assignment Brilliant Oceanic Brilliant Oceanic Assets Liabilities & Equity Current assets: Current liabilities: Cash 287 184,5 Accounts payable 0 0 Accounts receivable 105 67.5 Accruals 63.2813 0 Inventories 308 198 Notes payable 358.5938 337.5 Total current assets 700 450 Total current liabilities 421.875 337.5 Net fixed assets: Long-term bonds $15.625 412.5 Net plant and equipment 550 550 Total debt 937.5 750 Common equity Common stock 203.125 162.5 Retained earnings 109.375 87.5 Total common equity 312.5 250 Total assets 1,250 1000 Total liabilities and equity 1,250 1000 Oceanic's current ratio is and its quick ratio is , whereas Brilliant's current ratio is , and its quick ratio is Which of the following statements are true? Check all that apply. Brilliant Industries has a better ability to meet its short-term labilities than Oceanic Inc. 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. As compared to Oceanic Inc., Brilliant Industries has lesser liquidity and relatively greater reliance on outside cash flow to finance its short-term obligations. An increase in the current ratio over time would always mean that the company's liquidity position is improving. PERSIEURS Course x