Jing Foodstuffs Corporation Jing Free Spirit Foodstuffs Industries Corporation Corporation Assets Current assets Cash Accounts receivable Inventories Total current assets Net fixed assets Net plant and equipment $2,296 840 2,464 5,600 Balance Sheet December 31st (Millions of dollars) Free Spirit Industries Corporation Liabilities Current liabilities $1,476 Accounts payable 540 Accruals 1,584 Notes payable 3,600 Total current liabilities Long-term bonds 4,400 Total debt Common equity Common stock Retained earnings Total common equity 8,000 Total liabilities and equity 2,700 3,375 2,700 4,400 4,125 7,500 3,300 6,000 1,625 1,300 700 875 2,000 Total assets 10,000 2,500 10,000 8,000 e Spirit Industries Corporation's current ratio is o is and its quick ratio is 1, and its quick ratio is Jing Foodstuffs Corporation's curren Note: Round your values to four decimal places. Which of the following statements are true? Check all that apply. Free Spirit Industries Corporation has less liquidity but also a greater reliance on outside cash flow to finance its short-term obligations than Jing Foodstuffs Corporation. 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. 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, then the company depends heavily on the sale of its inventory to meet its short-term obligations. Free Spirit Industries Corporation has a better ability to meet its short-term liabilities than Jing Foodstuffs Corporation An increase in the current ratio over time always means that the company's liquidity position is improving. 032 2013 2004-2016 Apg Grade It Now Save & Continue