Calculate the current ratio for each company.  Be sure to show your calculations.                                  Current Assets                     Current Liabilities Company 1               89,378                                    80,610 Company 2               90,114                                     19,310   Company 1:   Company 2:    Comment on the results:  Which company has the strongest liquidity position?

Q: Which of the following shows how a payment made to settle an accrued expense, such as salaries…

A: Payment of accrued expense reduce cash balance (asset). Accrued expense is a liability that needs to…

Q: increasing the company's debts on Return on Assets (ROA) and Return on Equity (ROE

A: Debt is the liability incurred by the company by borrowing for its financial needs.

Q: Which of the following tracks how much money a company has generated over time and where it went? O…

A: Cash flow is the movement of money in and out of business during the given time period.

Q: Indicate the effect of the transactions listed in the following table on total current assets,…

A: A cash dividend is declared and paid: Cash is decreasing. Which means current assets decrease and…

Q: ne debt to O the F

A: The debt to asset ratio is a leverage ratio that measures the number of total assets that are…

Q: The relationship between current assets and current liabilities is   a. useful in determining…

A: The answer is as fallows

Q: The current ratio of a company is its current assets divided by its current liabilities. Question 7…

A: CURRENT RATIOCurrent Ratio is the ratio between Current Assets & Current Liabilities. Current…

Q: Provide the formulas to calculate the following items from a company's financial statement: 1. Cash…

A: Ratio analysis is a method of analyzing a company's financial performance by comparing different…

Q: The following accounting information exists for Aspen and Willow companies. Aspen $ 18,000 Cash…

A: Introduction: Current assets are all assets of the company expects to sell or use within the next…

Q: Dividing quick assets by current liabilities is the calculation for the a.ratio of liabilities to…

A: Ratio analysis is a method of measuring the financial position of the organization with different…

Q: Potential stockholders and lenders are interested in a company's financial statements. Several…

A: Introduction:- Assets are resources (property) presented in the balance sheet because for it an…

Q: Assets Value Duration of the Asset Convexity of the Asset 5yr bond bought at a yield of 3.4% $550M…

A: The question is based on the concept of calculation of equity to asset ratio and duration…

Q: Calculate Ebanks, Inc.'s margin and net income. h. Çalculate Ebanks, Inc.'s return on а. equity.

A: Step 1 Calculation of net income: Calculation of Margin:

Q: The return on total assets is the focus of analysts, creditors, and other users of financial…

A: Return on total asset is a profitability ratio which indicates the percentage return earned on the…

Q: I have the statement of Cash Flows, Balance Sheet, Income Statement, and Stock History Report. What…

A: The questions on the valuation of a company are answered hereunder : The process of determining the…

Q: When analyzing financial statements, creditors are more concerned with which of the following? a.…

A: Financial statement analysis: The process of analyzing the financial statements of a company to…

Q: What do the following ratios reveal about the financial health of a company? And how do I calculate…

A: Liquidity Ratios: These ratios play an important role in measuring or analyzing the short term…

Q: Indicate the effect of the transactions listed in the following table on total current assets,…

A: Cash is obtained through short-term bank loans.  Here, current liability is increasing and also cash…

Q: balance sheet is TRUE? a. Ob. Operating cash flow (OCF) should be the cash av creditors. Assets on…

A: Balance sheet shows the statement of the financial positions of the company and there are assets on…

Q: h of the following statements is correct? Statement 1. Ratios are used to compare different…

A: Financial statements prepared by the company are analyzed by various stakeholders. Analysis of…

Q: The​ ________ is a measure of a​ company's ability to pay its current liabilities from cash and cash…

A: Cash conversion cycle is a working capital metric which expresses how many days it takes a company…

Q: Total assets Total liabilities Total equity

A: Form K-10 is the form which is submitted by the taxpayer organization. It is a form which provides…

Q: What amount of total assets does the company report on its balance sheet? 2. What amount of total…

A: Total Assets = Total Liabilities + Shareholders' Equity

Q: Use the letters a to k from the balance sheet classifications provided below to indicate the usual…

A: The balance sheet is a report that summarizes all of an entity's assets, liabilities and equity as…

Q: Operating expenses are on the Statement of Cash Flows. True False Question 6 Which of the following…

A: This question has two parts: First part is True or False statement Second part is multiple choice…

Q: Which of the following is NOT a financial statement?Choose one answer.a. Income statement b. Balance…

A: Financial statements: These refer to the formal or official records of the activities of the…

Q: even meun The following data were taken from the financial statements of Woodwork Enterprises Inc.…

A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…

Q: HW-3 Information The following Balance Sheet is available. Unfortunately, the company's accountant…

A: Balance sheet is a financial statement that records and shows the financial position of a business…

Q: c. What will the balance sheet look like after the dividends are paid? (Do not round intermediate…

A: Introduction: A balance sheet is a financial statement that conveys an organization's "book value,"…

Q: What are some of the ratios used in evaluating the Liquidity of a company from it's annual financial…

A: there are four ratios used in evaluating the liquidity of a company 1)current ratio  2) quick ratio…

Q: Most companies pay current liabilities Select one: a. out of current assets. b. by issuing…

A: Current liability: Current liability refers to any form of liability of the organization for a term…

Q: calculate in which year Office Depot has the greatest financial liquidity using the data provid

A: Ratio analysis used identify the business performance of the company.It is used to measure financial…

Q: Duckies, Etc. is a bath toy manufacturer reviewing their current Balance Sheet. 1. What are the…

A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…

Q: Match the words to the definitions. Solvency Accounts Receivable Balance Sheet Noncurrent Assets…

A: The transaction of the business are recorded in the books of accounts. The financial statement…

Q: Consider the following company’s balance sheet and income statement Return on assets. Return on…

A: We need to compute the profitability  ratios using the given  financial statements.

Q: 1. Calculate the current ratio and quick ratio for each of the company respectively. 2. Comment the…

A: Current Ratio = Current Assets/Current Liabilities Liquid Ratio = Liquid Assets/ Current Liabilities…

Q: Match the following terms or phrases in (a–g) with the explanations in 1–8. Terms or phrases may be…

A: US GAAP defines contingent liabilities as: Any potential future loss that depends on a "triggering…

Q: A company’s Quick Ratio is computed as Current Assets divided by Current Liabilities.  Question…

A: The fast ratio is a formula and a financial indicator that determines how effectively a firm can pay…

Q: Earning's Compute the liquidity and profitability ratios of Blossom Company for 2021 and 2022.…

A: A vital instrument for analyzing financial statements is accounting ratios. To analyze a company's…

Q: Which one of the following is a principal function of the statement of cash flows? a. To predict…

A: Statement of cash flows is the part of financial statements which is used to see the cash movement…

Q: Compute the missing amounts on the company’s financial statements. (Hint: What’s the difference…

A: Retained Earnings - Retained earnings are the total amount of a company's profits that are set aside…

Q: The balance sheet is a summary of the firm's financial position at a given point in time Select one:…

A: There are various statements used to analyze financial position

Q: Read the following statements regarding financial statements. Select the correct statement(s). OA.…

A: The accounting process includes the bookkeeping process which involves the journal entry of the…