Selected balance sheet and income statement information for two manufacturing companies: Calico, Inc. and Packard Corporation follows:

a. Calculate the current ratio and quick ratio for both companies.
b. Which company is more liquid?
c. Calculate the times-interest-earned ratio and debt-to-equity ratio for both companies.
d. Which company is more solvent?

Question

Selected balance sheet and income statement information for two manufacturing companies: Calico, Inc. and Packard Corporation follows:
  
a. Calculate the current ratio and quick ratio for both companies.
b. Which company is more liquid?
c. Calculate the times-interest-earned ratio and debt-to-equity ratio for both companies.
d. Which company is more solvent?

Quizplus · Accepted Answer

The Answer of Selected balance sheet and income statement information for two manufacturing companies: Calico, Inc. and Packard Corporation follows:
  
a. Calculate the current ratio and quick ratio for both companies.
b. Which company is more liquid?
c. Calculate the times-interest-earned ratio and debt-to-equity ratio for both companies.
d. Which company is more solvent?

Selected Balance Sheet and Income Statement Information for Two Manufacturing