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Use the following selected financial information to compare these two companies at December 31, 2012, and to answer the questions that follow. Use the following
Use the following selected financial information to compare these two companies at December 31, 2012, and to answer the questions that follow.
Use the following selected financial information to compare these two companies at December 31, 2012, and to answer the questions that follow. Sweet Co. Sour Co. Cash $2,600 $630 Short-term investments 200 1,890 Accounts and notes receivable 23,400 26,000 Inventories 2,100 2,300 Prepaid expenses 2,700 1,260 Total current assets 31,000 31,920 Total current liabilities 11,000 8,400 25,200 Long-term liabilities 5,600 21,000 Stockholders' equity 13,000 (Round your answers to two decimal places.) A) Compute the current ratios for the two compan es. Sweet: Sour: B) Compute the quick ratios for the two companies Sweet: Sour: C) which company appears to be more liquid? Select D) What other ratios would help to more fully assess the liquidity of these two companiesStep by Step Solution
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