Gaia Group and Vallante Corporation. Balance Sheet Year ending December 31 (millions of dollars) ASSETS Current assets: Cash and equivalents Accounts receivable Inventory Total current assets Net fixed assets: Net plant and equipment Total assets LIABILITIES and EQUITY Current liabilities: Accounts payable Accruals Notes payable Total current liabilities Long-term bonds Total debt Common equity: Common stock Retained earnings Total common equity Total liabilities and equity Gaia $4,592 1,680 4,928 $11,200 Vallante $0 1,012.5 5,737.5 $2,952 1,080 3,168 $7,200 8,800 8,800 $20,000 $16,000 $0 0 5,400 $6,750 $5,400 8,250 6,600 $15,000 $12,000 $3,250 $2,600 1,750 1,400 $5,000 $4,000 $20,000 $16,000 common equity Total liabilities and equity Vallante's current ratio is $5,000 $20,000 and its quick ratio is AUU $4,000 $16,000 whereas Gaia's current ratio is Which of the following statements are true? Check all that apply. and its quick ratio is An increase in the current ratio over time would always mean that the company's liquidity position is improving. If a company's current liabilities are increasing faster than its current assets, the company'scy 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. Gala Group has a better ability to meet its short-term liabilities than Vallante Corporation. As compared to Vallante Corporation., Gaia Group has lesser liquidity and relatively greater reliance on outside cash flow to finance its short-term obligations