Question

The most recent data from the annual balance sheets of N&B Equipment Company and Jing Foodstuffs Inc. are as follows: Balance Sheet December 31st (Millions of dollars) Jing Foodstuffs N&B Equipment Jing Foodstuffs Inc. Company Inc. Liabilities N&B Equipment Company Assets Current assets Current liabilities Cash $574 $369 Accounts payable $0 $0 Accounts 210 135 Accruals 127 0 receivable Inventories 616 396 717 675 Total current 1,400 900 Notes payable Total current liabilities 844 675 assets 1,031 825 Net fixed assets Net plant and equipment Long-term bonds Total debt 1,100 1,100 1,875 1,500 Common equity Common stock 406 325 Retained earnings 219 175 Total common 625 500 Total assets 2,500 2,000 equity Total liabilities and equity 2,500 2,000 ; Jing Foodstuffs Inc.'s current ratio is , and N&B Equipment Company's current ratio is , and its quick ratio is its quick ratio is Note: Round your values to four decimal places.

Answer 1

and MEB {auipment Company's leverent ratio is 1.3333 its Quick ratio is 0.7467 Jing foodstreff inc Cwerent ratio is and its Quick ratio is 0.9289 T 1. 65 88 Curient datio Current Assets / Current Liabilities ding → 1400 /844 7 1.6588 NIB 900 / 675 7 1.3333 Quick ratio Cash (+) Accounts Receivable / Current Liabilities ding & 574 + 210/844 7 0.9289 NSB 369 +135/ 675 0.7467 Statements which are True A Jing foodstuff Inc has better ability to meet shoat teen L'alueities then N&B Equipment Company. B. If Company's current L'abilities increase faster then its werent assets, company L'avidity is weakening Increase in Quick ratio over time usually means companys Louidity Position is improving E. Increase in current ratio over time Means Company Louidity Position is improving