The following information was drawn from the balance sheets of the Kansas and Montana companies:

Required

a$.$ Compute the current ratio for each company.

b$.$ Which company has the greater likelihood of being able to pay its bills?

Which company has the greater likelihood of being able to pay its bills?

c$.$ Assume that both companies have the same amount of total assets. Speculate as to which company

would produce the higher return$-$on$-$assets ratio.

Which company would produce the higher return$-$on$-$assets ratio?