Information for two companies in the same industry, Meadow Corporation and Plain Corporation, is presented here.

InstructionsUsing the cash-based measures presented in this chapter, compare the(a) Liquidity and(b) Solvency of the two companies.

Meadow Plain Corporation $ 80,000 Corporation $100,000 Cash provided by operating activities Average current liabilities Average total liabilities Net income Capital expenditures Dividends paid 100,000 180,000 200,000 40,000 200,000 70,000 10,000 5,000