The most recent data from the annual balance sheets of Gaia Group and Virtual Industries are given.

Gaia Group and Virtual Industries	Gaia	Virtual
Balance Sheet
Year ending December 31
(millions of dollars)
ASSETS
Current assets:
Cash and equivalents	$4,592	$2,952
Accounts receivable	1,680	1,080
Inventory	4,928	3,168
Total current assets	$11,200	$7,200
Net fixed assets:
Net plant and equipment	8,800	8,800
Total assets	$20,000	$16,000
LIABILITIES and EQUITY
Current liabilities:
Accounts payable	$0	$0
Accruals	1,012.5	0
Notes payable	5,737.5	5,400
Total current liabilities	$6,750	$5,400
Long-term bonds	8,250	6,600
Total debt	$15,000	$12,000
Common equity:
Common stock	$3,250	$2,600
Retained earnings	1,750	1,400
Total common equity	$5,000	$4,000
Total liabilities and equity	$20,000	$16,000

Virtual Industriess quick ratio is ______ , and its current ratio is ____ , whereas Gaia Groups quick ratio is ____ , and its current ratio is _____ .

Which of the following statements are true? Check/Select all that apply.

As compared to Gaia Group, Virtual Industries has less liquidity and relatively greater reliance on outside cash flow to finance its short-term obligations.

An increase in the current ratio over time would always mean that the companys liquidity position is improving.

If a companys current liabilities are increasing faster than its current assets, the companys liquidity position is weakening.

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, it would mean that the company depends heavily on the sale of its inventory to meet its short-term obligations.

Virtual Industries has a better ability to meet its short-term liabilities than Gaia Group