The following accounting information exists for Charles and James companies at the end of 2016:

	Charles			James
Cash	$	15,000		$	25,000
Wages payable		21,500			21,000
Merchandise inventory		27,950			56,000
Building		60,000			120,000
Accounts receivable		39,010			33,475
Long-term notes payable		80,000			140,000
Land		50,000			60,000
Accounts payable		44,000			54,500
Sales revenue		240,000			300,000
Expenses		185,000			235,000

Required

a-1.	Determine the amount of current assets and current liabilities for each company.

a-2.	Compute the current ratio for each company. (Round your answers to 2 decimal places.)

b.	Assuming that all assets and liabilities are listed above, compute the debt to assets ratios for each company. (Round your answers to 1 decimal place.)

c-1.

Determine which company has the greater financial risk in the short term.

	Charles
	James

c-2.

Determine which company has the greater financial risk in the long term.

	Charles
	James