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 Balance Sheet December 31st (Millions of dollars) Pellegrini Southern Inc. Jing Foodstuffs Inc. Jing Foodstuffs Inc. Pellegrini Southern Inc. Assets Current assets Cash Accounts receivable Inventories Total current assets $5,166 1,890 5,544 12,600 $3,321 1,215 3,564 8,100 1,139 6,455 6,075 6,075 7,594 Net fixed assets Net plant and equipment Liabilities 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 9,281 16,875 7,425 13,500 9,900 9,900 3,656 1,969 5,625 22,500 2,925 1,575 4,500 18,000 Total assets 22,500 18,000 Pellegrini Southern Inc.'s current ratio is , and its quick ratio is , and its quick ratio is ; Jing Foodstuffs Inc.'s current ratio is . Note: Round your values to four decimal places. Which of the following statements are true? Check all that apply. Jing Foodstuffs Inc. has a better ability to meet its short-term liabilities than Pellegrini Southern Inc.. O 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. Compared to Pellegrini Southern Inc., Jing Foodstuffs Inc. has less liquidity and a lower reliance on outside cash flow to finance its short-term obligations. An increase in the current ratio over time always means that the company's liquidity position is improving