2 The following information was drawn from the balance sheets of the Kansas and Montana companies. Montana $88,000 52,800 Current assets Current liabilities Required a. Compute the current ratio for each company. b. Which company has the greater likelihood of being able to pay its bills? c. Assume that both companies have the same amount of total assets. Speculate as to which company would produce the higher return-on-assets ratio. Kansas $72,000 50,300 Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the current ratio for each company. (Round your answers to 2 decimal places.) Kansas Montana Current Ratio to 1 to 1 Besired A Required B >

2 The following information was drawn from the balance sheets of the Kansas and Montana companies. Montana $88,000 52,800 Current assets Current liabilities Required a. Compute the current ratio for each company. b. Which company has the greater likelihood of being able to pay its bills? c. Assume that both companies have the same amount of total assets. Speculate as to which company would produce the higher return-on-assets ratio. Kansas $72,000 50,300 Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the current ratio for each company. (Round your answers to 2 decimal places.) Kansas Montana Current Ratio to 1 to 1 Besired A Required B >

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 52CE: Asset Efficiency Ratios Selected financial statement numbers for Rutherford Company follow....

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Current Attempt in Progress Suppose selected comparative statement data for the giant bookseller Barnes & Noble are as follows. All balance sheet data are as of the end of the fiscal year (in millions). Net sales Cost of goods sold Net income Accounts receivable Inventory Total assets Total common stockholders' equity 2022 $5,050.3 3,700.7 65.1 65.0 1,250.1 2,950.1 940.6 2021 $5,800.9 3,200.1 190.9 106.6 1,350.1 3,250.1 1,100.5
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