The following accounting information exists for Diamond and Emerald companies at the end of 2014: Required a.

The following accounting information exists for Diamond and Emerald companies at the end of 2014:

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 longterm.

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Diamond Emerald Cash Wages payable Merchandise inventory Building UI Accounts receivable Long-term notes payable Land Accounts payable Sales revenue Expenses S 230,000 185,000 40,000 315,000 500,000 200,000 600,000 220,000 300,000 3,520,000 2,850,000 3,230,000 2,615,000 50,000 430,000 600,000 250,000 550,000 250,000 350,000