Question
Presented below is the consolidated balance sheet for Tala Inc. at December 31, 2018: (In thousands) Current assets Cash $ 12,300 Accounts receivable 13,750 Inventory
Presented below is the consolidated balance sheet for Tala Inc. at December 31, 2018:
(In thousands) |
|
Current assets |
|
Cash | $ 12,300 |
Accounts receivable | 13,750 |
Inventory | 10,700 |
Marketable securities | 12,950 |
Total current assets | 49,700 |
Equipment, net | 79,500 |
Total assets | $129,200 |
|
|
Current liabilities |
|
Accounts payable | $ 10,500 |
Income taxes payable | 5,000 |
Current portion of long-term debt | 6,500 |
Total current liabilities | 22,000 |
Long-term obligations | 37,700 |
Common stock | 27,500 |
Retained earnings | 42,000 |
Total liabilities & shareholders' equity | $129,200 |
How does Tala's current ratio compare to the industry average of 1.8?
Group of answer choices
a. Tala's current ratio is significantly lower than the benchmark.
b. Tala is significantly more liquid than other companies in the same industry.
c. Tala will likely have a more difficult time servicing its current liabilities as compared to its competition.
d. Tala's current ratio implies it is riskier than other companies in the same industry.
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