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.

Transcribed Image Text:

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