Question: You have been provided with the following information about two companies: Required: a. Calculate the current ratio for each company and the amount of working

You have been provided with the following information about two companies:

Required:
a. Calculate the current ratio for each company and the amount of working capital each company has.
b. Which company has a stronger liquidity position? In responding consider the com-position of the accounts used to calculate the current ratio in addition to the current ratioitself.

Company B 15 410 255 170 195 60 Company A Cash Accounts receivable Inventory Short-term bank loan Accounts payable and accrued liabilities Customer deposits $ 90 375 200 225 170 60

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a Company A Current Ratio 9037520022517060 146 Working Capital 665 455 210 Company B Current Ratio 1... View full answer

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