The following information was drawn from the 2014 balance sheets of the Georgia and Nevada Companies:

Required
a. Compute the current ratio for each company.
b. Which company has the greater likelihood of being able to pay its bills?
c. Assume that both companies have the same amount of total assets. Speculate as to which company would produce the higher return on assetsratio.

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Georgia Company S40,000 25,000 Nevada Company Current assets Current liabilities $70,000 55,000