dropdown options for 1= 2.53, 1.83, 2.83, or 1.33

options for 2= 0.90, 1.13, 0.93, 0.75

options for 3= 1.66, 2.16, 2.86, 3.16

options for 4= 1.12, 0.93, 0.75, 1.40

8. Liquidity ratios A liquid asset can be converted quickly to cash with little sacrifice in its value. Which of the following assets classes is generally considered to be the least liquid? O Accounts receivable O Inventories Plant and equipment The most recent data from the annual balance sheets of Brilliant Industries and Vallante Corporation. are given. The most recent data from the annual balance sheets of Brilliant Industries and Vallante Corporation, are given. Balance Sheet For the Year Ending on December 31 (Millions of dollars) Brilliant Vallante Brilliant Vallante Assets Liabilities & Equity Current assets: Current liabilities: Cash 287 184.5 Accounts payable Accounts receivable 105 67.5 Accruals 0 0 337.5 Inventories 308 198 0 63.2813 358.5938 421.875 515.625 Notes payable Total current assets 700 450 Total current liabilities 337.5 Long-term bonds 412.5 Net fixed assets: Net plant and equipment 550 550 Total debt 937.5 750 Common equity Common stock 162.5 Retained earnings 203.125 109.375 312.5 1,250 Total common equity Total liabilities and equity 87.5 250 1000 Total assets 1,250 1000 Vallante'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. O Brilliant Industries has a better ability to meet its short-term liabilities than Vallante Corporation. 0 If a company's current liabilities are increasing faster than its current assets, the company's liquidity position is weakening. If a company has a quick ratio of less than 1 but a current ratio of more than 1, and if the difference between the two ratios is large, it would mean that the company depends heavily on the sale of its inventory to meet its short-term obligations. As compared to Vallante Corporation., 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. One of the most important assumptions behind the calculation of quick ratio is that: O The firm's inventories are highly liquid and can be sold quickly with minimal loss of value to assist in the settlement of the firm's financial obligations O The firm's accounts receivables will be collected late (after the expiration of the credit period) or are uncollectible O The firm's accounts receivables can be collected and converted into cash within the time period for which credit was granted