Please use the following data for Questions 26-35 (for ratios involving balance sheet items, use the end of year value:

Firm A Firm B (in $000s)

Cash 5,500 12,500 Accounts Receivable 4,000 6,500 Inventory 9,500 11,000 Current Assests 19,000 30,000

Porperty & Equipment (Net) 12,000 18,000 Other Assests 8,000 12,000

Total Assets 39,000 60,000

Current Liabilities 9,000 12,000

Long Term Debt 4,000 10,000

Common Stock 12,000 30,000 Retained Earnings 14,000 8,000

Total Liabilities and Equity 39,000 60,000

Sales Revenue 70,000 120,000 Costs of goods sold 50,000 95,000 Net sales revenue 20,000 25,000 Operating expenses 16,000 18,000 EBIT 4,000 7,000

Net Income 2,000 3,000

Shares outstanding (000s) 1,000 4,000

1. Which Company has a better Current Ratio?

a.Firm A

b.Firm B

c.Can