Liquidity Ratios Look at the following current asset and liability data for Beaches Resorts (BR) and choose the correct conclusion: Assets Amount (Mil) Liabilities Amount (Mil) Cash $ 95 Payables $ 555 Securities $ 195 Bank notes $ 350 Receivables $ 455 Other $ 158 Inventory $ 567 Industry average current ratio 1.28 Industry average quick ratio 0.84

Multiple Choice BR is less liquid than the industry average according to the current ratio but more liquid according to the quick ratio BR is less liquid than the industry average according to both the current and quick ratio. BR is more liquid than the industry average according to both the current and quick ratio. BR is more liquid than the industry average according to the current ratio but less liquid according to the quick ratio