Business, 15.02.2020 01:16, ayoismeisalex

Blue Moose Home Builders’s quick ratio is , and its current ratio is ; Blue Hamster Manufacturing Inc.’s quick ratio is , and its current ratio is .

Which of the following statements are true? Check all that apply.

Blue Hamster Manufacturing Inc. has a better ability to meet its short-term liabilities than Blue Moose Home Builders

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 Blue Moose Home Builders, Blue Hamster Manufacturing Inc. has less liquidity and a relatively greater 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.

Answers: 2

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Answers

Blue Moose Home Builders’s quick ratio is _0.7___, and its current ratio is 1.3; Blue Hamster Manufacturing Inc.’s quick ratio is _1.7, and its current ratio is __0.9___ .

Explanation:

It is true that Blue Hamster Manufacturing Inc. has a better ability to meet its short-term liabilities has it has higher current and quick ratios.

Is also true that if a company's current liabilities are increasing faster than its current assets,the company's liquidity position is weakening as if finds harder to settle short term obligations.

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.This is also true.

Compared to Blue Moose Home Builders, Blue Hamster Manufacturing Inc. has less liquidity and a relatively greater reliance on outside cash flow to finance its short-term obligations.This is also correct.

An increase in the current ratio over time always means that the company’s liquidity position is improving.This does not necessarily guarantee improvement as the increase in current assets might be due to increase in obsolete inventory items that are worthless

answered: Guest

Because she is a liberal

answered: Guest

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan

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Blue Moose Home Builders’s quick ratio is , and its current ratio is ; Blue Hamster Manufacturing In...