The following accounting information exists for Poe and Scott companies at the end of 2014:

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 longterm.

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Poe Scott Cash Wages payable Merchandise inventory Building Accounts receivable Long-term notes payable Land Accounts payable Sales revenue Expenses 110,000 130,000 150,000 170,000 500,000 180,000 500,000 280,000 130,000 1,200,000 1,450,000 1,090,000 1,350,000 125,000 135,000 400,000 150,000 450,000 220,000 120,000