LeBron Sports Equipment Corporation Assets Current assets Cash $1,435 Accounts 525 receivable Inventories 1,540 Total current $3,500 assets Net fixed assets Net plant and 2,750 equipment Total assets $6,250 Balance Sheet December 31st (Millions of dollars) Free Spirit Industries Corporation Liabilities Current liabilities $922 Accounts payable 338 Accruals 990 Notes payable $2,250 Total current liabilities Long-term bonds 2,750 Total debt Common equity Common stock Retained earnings Total common equity $5,000 Total liabilities and equity LeBron Sports Equipment Corporation $0 316 1,793 $2,109 2,578 $4,687 $1,016 547 $1,563 $6,250 Free Spirit Industries Corporation $0 0 1,687 $1,687 2,063 $3,750 $813 437 $1,250 $5,000 , and its quick ratio is ; LeBron Sports Equipment Corporation's current Free Spirit Industries Corporation's current ratio is , and its quick ratio is ratio is 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 LeBron Sports Equipment 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 Lebron Sports Equipment Corporation An increase in the current ratio over time always means that the company's liquidity position is improving