Problem -
Company A Company B
Current Assets $ 6,053 $ 6,918
Current Liabilities $ 4,446 $ 2,025
Total Assets $ 13,659 $ 12,667
Total Liabilities $ 10,630 $ 2,692
a. Compute the current ratio for each company.
b. Compute the debt to assets ratio for each company.
c. Based on the ratios computed in a and b, which company had the better liquidity?
d. Based on the ratios computed in a and b, which company had the better solvency?