The most recent data from the annual balance sheets of Pellegrini Southern Inc. and Scramouche Opera Co. are as follows: \begin{tabular}{|c|c|c|c|c|c|c|} \hline & & & & & & = \\ \hline Totalcurrentassets & $11,200 & $7,200 & Totalcurrentliabilities & $6,750 & $5,400 & \\ \hline Net fixed assets & & & Long-term bonds & 8,250 & 6,600 & \\ \hline \multirow[t]{5}{*}{Netplantandequipment} & 8,800 & 8,800 & Total liabilities & $15,000 & $12,000 & \\ \hline & & & Common equity & & & \\ \hline & & & Common stock & 3,250 & 2,600 & \\ \hline & & & Retained earnings & 1,750 & 1,400 & \\ \hline & & & Total common & $5,000 & $4,000 & \\ \hline \end{tabular} The most recent data from the annual balance sheets of Pellegrini Southern Inc. and Scramouche Opera Co. are as follows: \begin{tabular}{|c|c|c|c|c|c|} \hline \multicolumn{6}{|c|}{ Balance Sheet December 31st (Millions of dollars) } \\ \hline & ScramoucheOperaCo. & PellegriniSouthernInc. & & ScramoucheOperaCo. & PellegriniSouthernInc. \\ \hline Assets & & & Liabilities & & \\ \hline Current assets & & & Current liabilities & & \\ \hline Cash & $4,592 & $2,952 & Accounts payable & $0 & $0 \\ \hline Accountsreceivable & 1,680 & 1,080 & Accruals & 1,013 & 0 \\ \hline Inventories & 4,928 & 3,168 & Notes payable & 5,737 & 5,400 \\ \hline Tntal ruirrent & $11.200 & $7.200 & Thtalruirrent & $6.750 & $5.4nn \\ \hline \end{tabular} The most recent data from the annual balance sheets of Pellegrini Southern Inc. and Scramouche Opera Co. are as follows: 2. Liquidity ratios A liquid asset can be converted quickly to cash with little sacrifice in its value. Which of the following asset classes is generally considered to be the least liquid? Accounts receivable Cash Inventories Complete the following table by entering the values of the current and quick ratios for Pellegrini Southern Inc. and Scramouche Opera Co.. (Hint: Round to two decimal places. ) Which of the following statements are true? Check all that apply. Scramouche Opera Co. has a better ability to meet its short-term liabilities than Pellegrini Southern 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. Compared to Pellegrini Southern Inc., Scramouche Opera Co. has less liquidity and a lower reliance on outside cash flow to finance its short-term obligations. An increase in the current ratio over time always means that the company's liquidity position is improving. One of the most important assumptions behind the calculation of the quick ratio is that the firm's accounts receivable be converted into cash within the time period for which credit was granted