Use the following selected financial information to compare these two companies at December 31,Year 1,and to answer the questions that follow.
$\begin{array}{lrrr}
&\underline{\text { Robin's Co.} }&\underline{\text { Ruth's Co }}\
\text { Cash } & \$ 1,100 & \$ 300 \
\text { Short-term investments } & 100 & 900 \
\text { Accounts and notes receivable } & 11,700 & 12,400 \
\text { Inventories } & 1,200 & 1,000 \
\text { Prepaid expenses } & 1,400 & 600 \
\quad \text { Total current assets } & 15,500 & 15,200\
\
\text { Total current liabilities } & 5,000 & 4,000 \
\text { Long-term liabilities } & 2,300 & 12,000 \
\text { Shareholders' equity } & 5,300 & 7,300
\end{array}$

A) Compute the current ratios for the two companies.

Question

Use the following selected financial information to compare these two companies at December 31,Year 1,and to answer the questions that follow.
 $\begin{array}{lrrr}
&\underline{\text { Robin's Co.} }&\underline{\text { Ruth's Co }}\
\text { Cash } & \$ 1,100 & \$  300 \
\text { Short-term investments } & 100 & 900 \
\text { Accounts and notes receivable } & 11,700 & 12,400 \
\text { Inventories } & 1,200 &  1,000 \
\text { Prepaid expenses } & 1,400 &  600 \
\quad \text { Total current assets } & 15,500 & 15,200\
\
\text { Total current liabilities } & 5,000 & 4,000 \
\text { Long-term liabilities } & 2,300 & 12,000 \
\text { Shareholders' equity } & 5,300 & 7,300
\end{array}$
 
 A) Compute the current ratios for the two companies.

Quizplus · Accepted Answer

The Answer of Use the following selected financial information to compare these two companies at December 31,Year 1,and to answer the questions that follow.
 $\begin{array}{lrrr}
&\underline{\text { Robin's Co.} }&\underline{\text { Ruth's Co }}\
\text { Cash } & \$ 1,100 & \$  300 \
\text { Short-term investments } & 100 & 900 \
\text { Accounts and notes receivable } & 11,700 & 12,400 \
\text { Inventories } & 1,200 &  1,000 \
\text { Prepaid expenses } & 1,400 &  600 \
\quad \text { Total current assets } & 15,500 & 15,200\
\
\text { Total current liabilities } & 5,000 & 4,000 \
\text { Long-term liabilities } & 2,300 & 12,000 \
\text { Shareholders' equity } & 5,300 & 7,300
\end{array}$
 
 A) Compute the current ratios for the two companies.

Use the Following Selected Financial Information to Compare These Two