Information for two companies in the same industry, Patton Corporation and Sager Corporation, is presented here.

Instructions
Using the cash-based measures presented in this chapter, compare the
(a) Liquidity and
(b) Solvency of the twocompanies.

Net cash provided by operating activities Average current liabilities Average total liabilities Net income Capital expenditures Dividends paid Patton Corporation 80,000 50,000 180,000 200,000 40,000 5,000 Sager Corporation $100,000 100,000 250,000 200,000 70,000 10,000