Question
Company ACompany B Current Assets$ 6,053$ 6,918 Current Liabilities$ 4,446$ 2,025 Total Assets$ 13,659$ 12,667 Total Liabilities$ 10,630$ 2,692 a. Compute the current ratio for
Company ACompany B
Current Assets$ 6,053$ 6,918
Current Liabilities$ 4,446$ 2,025
Total Assets$ 13,659$ 12,667
Total Liabilities$ 10,630$ 2,692
a. Compute the current ratio for each company.
b. Compute the debt to assets ratio for each company.
c. Based on the ratios computed ina andb, which company had the better liquidity?
d. Based on the ratios computed ina andb, which company had the better solvency?
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Managerial Accounting Tools For Business Decision Making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly
2nd Canadian Edition
