Question: b. Based on the information provided in the following table, which company do you think is in a more liquid and solvent position? Why? Balance

b. Based on the information provided in the following table, which

b. Based on the information provided in the following table, which company do you think is in a more liquid and solvent position? Why? Balance sheet items Company A Company B Cash and equivalents BDT 5,000 BDT 30,000 Inventory 80,000 20,000 Accounts receivable 15,000 50,000 Total current assets BDT 100.000 BDT 100,000 Total current liabilities BDT 125,000 BDT 125,000 Current ratio 0.80 0.80

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