The most recent data from the annual balance sheets of Free Spirit Industries Inc. and LeBron Sports Equipment Inc. are as follows: Balance Sheet December 31 (Millions of dollars) LeBron Sports Free Spirit LeBron Sports Equipment Inc. Industries Inc. Equipment Inc. Free Spirit Industries Inc. Assets Liabilities Current assets Current liabilities Cash $5,740 $3,690 Accounts $0 $0 payable Accounts 2,100 1,350 Accruals 1,266 0 receivable Inventories 6,160 3,960 Notes payable 7,171 6,750 Total current 14,000 9,000 Total current 8,437 6,750 assets liabilities Net fixed assets Long-term 10,313 8,250 bonds Net plant and 11,000 11,000 Total debt 18,750 15,000 equipment Common equity Common stock 4,063 3,250 Retained 2,187 1,750 earnings Total common 6,250 5,000 equity Total assets 25,000 20,000 Total liabilities 25,000 20,000 and equity Free Spirit Industries Inc.'s quick ratio is and its current ratio is ; LeBron Sports Equipment Inc.'s quick ratio is and its current ratio is Which of the following statements are true? Check all that apply. Free Spirit Industries Inc. has less liquidity but also a greater reliance on outside cash flow to finance its short-term obligations than LeBron Sports Equipment Inc.. A current ratio of 1 indicates that the book value of the company's current assets is equal to the book value of its current liabilities. If a company has a quick ratio of less than 1 but a current ratio of more than 1 and if the difference between the two ratios is large, then the company depends heavily on the sale of its inventory to meet its short-term obligations. Free Spirit Industries Inc. has a better ability to meet its short-term liabilities than LeBron Sports Equipment Inc. 0 An increase in the current ratio over time always means that the company's liquidity position is improving