Back to Assignment Attempts Keep the Highest/3 2. Liquidity ratios Aliquid 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 tiquld? Accounts receivable Cash Inventories The most recent data from the annual balance sheets of Pellegrini Southern Corporation and Jing Foodstuffs Corporation are as follows: Jing Foodstuffs Corporation Pellegrini Southern Corporation Assets Current assets Balance Sheet December 31" (Millions of dollars) Pellegrini Southern Jing Foodstuffs Corporation Corporation Liabilities Current liabilities $3,136 Accounts $0 payable 1,148 Accruals 1,076 Cash $4,879 $0 1,785 Accounts receivable 0 Inventories 5,236 3,366 Notes payable 6,096 5,737 Total rural Inn Jing Foodstuffs Corporation Balance Sheet December 31" (Millions of dollars) Pellegrini Southern Jing Foodstuffs Corporation Corporation Liabilities Pellegrini Southern Corporation Assets Current assets Current Cash $0 54,879 $3,136 $0 liabilities Accounts payable Accruals 1,785 1,148 1,076 0 Accounts receivable Inventories 5,236 $11,900 3,366 $7,650 6,096 $7,172 5,737 $5,737 Total current assets Notes payable Total current liabilities Long-term bonds Net fixed assets 8,765 7,013 9,350 9,350 Total debt $15,937 $12,750 Net plant and equipment $2,763 $3,453 1,860 1,487 Common equity Common stock Retained earnings Total common equity Total liabilities and equity 55,313 $4,250 Total assets $21,250 $17,000 $21,250 $17,000 Pellegrini Southern Corporation's current ratio is and its quick ratio is Jing Foodstuffs Corporationscentration Pellegrini Southern Corporation's current ratio is and its quick ratio is and its quick ratio is Jing Foodstuffs Corporation's current ratio is Note: Round your values to four decimal places. Which of the following statements are true? Check all that apply. Pellegrini Southern Corporation has less liquidity but also a greater reliance on outside cash flow to finance its short-term obligations than Jing Foodstuffs Corporation If a company's current liabilities are increasing faster than its current assets, the company's liquidity position is weakening 18 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 ratlos is large, then the company depends heavily on the sale of its inventory to meet its short-term obligations Pellegrin Southern Corporation has a better ability to meet its short term liabilities than Jing Foodstuffs Corporation, An increase in the current ratio over time always means that the company's liquidity position is improving Grade It Now Savo & Continue Continue without saving