Solution-Compute the current and quick ratios for each

Compute the current and quick ratios for each company

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Reference no: EM132036380

Question - Liquidity ratios. Edison, Stagg, and Thornton have the following financial information at the close of business on July 10:

	Edison	Stagg	Thornton
Cash	$6,000	$5,000	$4,000
Short-term investments	3,000	2,500	2,000
Accounts receivable	2,000	2,500	3,000
Inventory	1,000	2,500	4,000
Prepaid expenses	800	800	800
Accounts payable	200	200	200
Notes payable: short-term	3,100	3,100	3,100
Accrued payables	300	300	300
Long-term liabilities	3,800	3,800	3,800

Compute the current and quick ratios for each of the three companies. Which firm is the most liquid? Why?

Reference no: EM132036380

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Compute the current and quick ratios for each company

Reference no: EM132036380

Reference no: EM132036380

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