The following information was drawn from the 2012 balance sheets of the Granite and Quartz companies.

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.

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Granite Quartz Current assets $90,000 $66,000 Current liabilities 70,000 41,000