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The following information was drawn from the balance sheets of the Kansas and Montana companies: Kansas Current assets Current liabilities $ 56,000 29,400 Montana
The following information was drawn from the balance sheets of the Kansas and Montana companies: Kansas Current assets Current liabilities $ 56,000 29,400 Montana $ 80,000 32,000 Required a. Compute the current ratio for each company. b. 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. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the current ratio for each company. Note: Round your answers to 2 decimal places. Kansas Montana Current Ratio to 1 to 1
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