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Most firms borrow money to finance some of their assets, and most will choose to borrow some long-term funds and some short-term funds. Which group

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Most firms borrow money to finance some of their assets, and most will choose to borrow some long-term funds and some short-term funds. Which group of lenders would put greater emphasis on a firm's liquidity ratio when evaluating a potential borrower? Long term lenders Short-term lenders The most recent data from the annual balance sheets of free Spirit Industries Corporation and Lebron Sports Equipment Corporation are as follows: Free Spint industries Corporatian's quick ratio is and its current intio is 7. Leflen Sports tquinment Corporetion's quick ratio is , and itis curtent ratio is Which of the following statements are true? Check all that apply. Free Spart Indiastres Corporation has less liquidity but alio a greater tefance on outude cash flow to finance its short term obligations than LeBron Sports Lquepment Corporatian. A current rabie of 1 indicates that the book value of the company's current assets is equal to the book yalue of its current liabilities. If a cornpany has a quick rabo of lese than 1 but a current ratio of more than 1 and if the diference between the two ratios is large, then the comgany depends heavly on the sale of its inventory to ment its short-term obligations. Free Spint Industries Comporation has a befter abity to meet its short-temm habities than Lebroet Sports fquipment Corporabon. An increase in the current rotio over tine always means that the company's ligudity positan is improving

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