2. Liquidity ratios Aa Aa E A liquid asset can be converted to cash quickly without significantly impacting the asset's value Which of the following asset classes is generally considered to be the most liquid? O Accounts receivable Cash Inventories The most recent data from the annual balance sheets of Fitcom Corporation and Jing Foodstuffs Inc. are as follows: Balance Sheet December 31st (Millions of dollars) Fitcom Corporation Jing Foodstuffs Inc. Jing Foodstuffs Inc. Fitcom Corporation $287 Assets Current assets Cash Accounts receivable Inventories Total current assets 105 308 700 $184 68 198 450 Liabilities Current liabilities Accounts payable Accruals Notes payable Total current liabilities 413 Net fixed assets Net plant and equipment Long-term bonds Total debt 550 550 750 163 Common equity Common stock Retained earnings Total common equity Total liabilities and equity 203 110 313 250 Total assets 1,250 1,000 1,250 1,000 Fitcom Corporation's current ratio is , and its quick ratio is ; Jing Foodstuffs Inc.'s current ratio is and its quick ratio is . Note: Round your values to four decimal places. Which of the following statements are true? Check all that apply. Jing Foodstuffs Inc. has a better ability to meet its short-term liabilities than Fitcom Corporation. If a company's current liabilities are increasing faster than its current assets, the company's liquidity position is weakening. If a company has a quick ratio of less than 1 but a current ratio of more than 1 and if the difference between the two ratios is large, then the company depends heavily on the sale of its inventory to meet its short-term obligations. Compared to Fitcom Corporation, Jing Foodstuffs Inc. has less liquidity and a lower reliance on outside cash flow to finance its short-term obligations. An increase in the current ratio over time always means that the company's liquidity position is improving. O