Question

1. Calculate the current ratio for each of the following companles. (Round your answers to 2 decimal places.) Current Ratio Edison | МАХТ Chatter TRU Current Current Assets Liabilities $ 77,000 $ 31,429 102,410 75,725 43,428 48,564 83,391 81,624 59,213 99,870 Gleeson 2. Identify the company with the strongest liquidity position. (These companies are competitors in the same Industry.) O Edison O MAXT O Chatter OTRU O Gleeson

Answer 1

Gorrent Edison $77,000 current Liabilities $31,429 Current Ralio 77,000 31,429 2.ts time 102,410 75725 MAXT $102,410 $75,725 Chatter 1.35 times $ 43428 $48,564 = 43 428 48,564 = 0.89 times TRU $ 83,391 $81,624 83,391 81,624 = 1.02 times Gleeson $ 59,213 $ 99,870 ? 59.213 99,870 0.59 time) In the given & leistian Currendatar ralian is calculated with the help of following formula - Current Ratio - Current Assets Current Liabilites © in the strongest liquidity position because its current role in 245 Ders which means its tolal assets would pay off its labilities 2.45 times