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Selected 2016 balance sheet and income statement information for Cloud 9 Super Store and Big T follow: Cloud 9 (in $000s) Big T (in
Selected 2016 balance sheet and income statement information for Cloud 9 Super Store and Big T follow: Cloud 9 (in $000s) Big T (in millions) $ Cash Accounts receivable Inventory Other current assets Total current liabilities Total liabilities Total equity Pre-tax income Interest expense A. B. C. D 19,453 13,536 87,606 3,176 143,636 242,734 204,345 45,040 4,128 $ 1,960 11,682 15,806 3,720 28,062 63,210 41,395 8,066 1,524 Calculate the current ratio and quick ratio for both companies. Which company is more liquid? Calculate the times interest earned and debt-to-equity ratio for both companies. Which company is more solvent?
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