Question
Company A has current assets of $4.2 billion and current liabilities of $4.3 billion. Company B has current assets of $3.7 billion and current liabilities
Company A has current assets of $4.2 billion and current liabilities of $4.3 billion. Company B has current assets of $3.7 billion and current liabilities of $2.8 billion. Which of the following statements is correct, based on this information?
Group of answer choices
Company A is less likely than Company B to have sufficient working capital to meet its short-term needs.
Company A is more likely than Company B to have sufficient working capital to meet its short-term needs.
Company A has less leverage than Company B.
Company A enjoys greater liquidity than company B.
Company A has greater leverage than Company B.
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