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QUESTION 3) (35 pts) Year-end balance sheets for 2018 and 2019 of XYZ Inc. are given below: a) Compare the liquidity position of this company

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QUESTION 3) (35 pts) Year-end balance sheets for 2018 and 2019 of XYZ Inc. are given below: a) Compare the liquidity position of this company at the end of 2018 and 2019 by computing the: current ratio and acid-test ratio. (20 pts) - Show calculations b) Comment on the ratio results you computed in (a) (15 pts, 75 words) Cash Accounts receivable, net Inventory Plant assets, net Total assets 2019 5,000 4,000 2,500 21.000 32.500 2018 10,000 4,000 3,500 22.500 40.000 Accounts payable Long-term bank loan Common stock Retained earnings Total liabilities and equity 10,000 11,000 7,500 4.000 32.500 10,000 11,000 7,500 11.500 40.000 Muam

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