The following accounting information exists for Collie and Spaniel companies at the end of 2016:

Required
a. Identify the current assets and current liabilities and compute the current ratio for each company.
b. Assuming that all assets and liabilities are listed here, compute the debt to assets ratios for each company.
c. Determine which company has the greater financial risk in both the short term and the long term.

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Collie Spaniel Cash Wages payable Merchandise inventory Building Accounts receivable Long-term notes payable Land Accounts payable Sales revenue Expenses 10,000 20,000 90,000 22,000 80,000 35,000 25,000 220,000 190,000 12,000 15,000 12,000 55,000 80,000 25,000 100,000 40,000 35,000 250,000 230,000