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