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

	Kansas	Montana
Current assets	$44,000	$46,000
Current liabilities	39,600	9,200

Required

1. Compute the current ratio for each company.
2. Which company has the greater likelihood of being able to pay its bills?
3. Assume that both companies have the same amount of total assets. Speculate as to which company would produce the higher return-on-assets ratio.

Complete this question by entering your answers in the tabs below. Required A Required B Required Compute the current ratio for each company. (Round your answers to 2 decimal places.) Current Ratio Kansas to 1 Montana to 1 Complete this question by entering your answers in the tabs below. Required A Required B Required 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.