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please show work! An analyst observes the following data for two companies: Which of the following choices best describes reasonable conclusions that the analyst might
please show work!
An analyst observes the following data for two companies: Which of the following choices best describes reasonable conclusions that the analyst might make about the two companies' ability to pay their current and longterm obligations? Company A's current ratio of 4.0 indicates it is more liquid than Company B. whose current ratio is only 1.2, but Company B is more solvent, as indicated by its lower debt-to-equity ratio. Company A's current ratio of 0.25 indicates it is less liquid than Company B, whose current ratio is 0.83, and Company A is also less solvent, as indicated by a debt-to-equity ratio of 200 percent compared with Company B's debt-to-equity ratio of only 30 percent. Company A's current ratio of 4.0 indicates it is more liquid than Company B. whose current ratio is only 1.2, and Company A is also more solvent, as indicated by a debt-to-equity ratio of 200 percent compared with Company B's debt-toequity ratio of only 30 percent Step by Step Solution
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