2. [20 points] Below are the comparative balance sheets for Redmond Corporation and Wishart Company Answer the following questions using the information given in these balance sheets. Redmond Corp. Wishart Company Current Assets Cash and equivalents 200 300 Accounts Receivable 1,100 2,400 Inventory 4,600 2,000 Total Current Assets 5900 4700 Property, Plant and Equipment 10,000 11,200 Total Assets 15,900 15,900 Current Liabilities Accounts Payable 3,000 3,200 Current portion of LT debt 200 400 Total Current Liabilities 3200 3600 Long-Term debt 2,000 7,000 Total Liabilities 5200 10,600 Common Stock 6,000 2,000 Additional Paid-in Capital 1.000 1,000 Retained Earnings 3,700 2,300 Total Stockholders' Equity 10,700 5300 Total Liab & SE 15,900 15,900 (a) Compute the current ratios for both Redmond Corporation and Wishart Company. Which company appears to be more solvent when looking at the current ratio? (b) Compute the quick ratios for both Redmond Corporation and Wishart Company. Which company appears to be more solvent when looking at the quick ratio? (c) Given your answers in (a) and (b), is there any sign for short-term trouble in one of these two firms? Explain your answer. (d) If the firms collect cash from their account receivables, can this action make changes in their short- term solvency measured by current and quick ratios? Briefly explain your