Chapter 2, Problem 30P

a)

Summary Introduction

To determine: A Company’s current ratio.

Introduction:

Current ratio is refers to the total current assets relative to its total current liabilities of a company.

b)

Summary Introduction

To determine: Quick ratio.

Introduction:

Quick ratio is also known as acid test ratio. It measures how a company meets its short-term liabilities.

c)

Summary Introduction

To determine: Cash ratio.

Introduction:

Cash ratio is a company’s total cash and cash equivalents with its current liabilities.

d)

Summary Introduction

To determine: The asset liquidity of A Company with that of H Company.