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Compute the current ratio for each company

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Reference no: EM131750647

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?

Reference no: EM131750647

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