The following accounting information exists for Charles and James companies at the end of 2016:

Required
a. Identify the current assets and current liabilities and compute the current ratio for each company.
b. Assuming that all assets and liabilities are listed here, compute the debt to assets ratios for each company.
c. Determine which company has the greater financial risk in both the short term and the long term.

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Charles James Cash Wages payable Merchandise inventory Building Accounts receivable Long-term notes payable Land Accounts payable Sales revenue Expenses 20,000 30,000 80,000 35,000 90,000 45,000 40,000 220,000 190,000 15,000 25,000 25,000 55,000 80,000 30,000 120,000 50,000 45,000 270,000 245,000