Using the following information, which company appears to be least solvent? $$\begin{array} { | l | r | r | r | r | }
\hline \text { (in } \$ \text { Millions) } & \begin{array} { c }
\text { Jones } \
\text { Company }
\end{array} & \begin{array} { c }
\text { Parles } \
\text { Company }
\end{array} & \begin{array} { c }
\text { Brady } \
\text { Company }
\end{array} & \begin{array} { c }
\text { Chambers } \
\text { Company }
\end{array} \
\hline \text { Cash provided by operating activities for } 2014 & 140 & 295 & 110 & 200 \
\hline \text { Current liabilities for } 2013 & 230 & 335 & 205 & 300 \
\hline \text { Current liabilities for } 2014 & 280 & 375 & 240 & 360 \
\hline \text { Total liabilities for } 2013 & 600 & 440 & 275 & 500 \
\hline \text { Total liabilities for } 2014 & 720 & 530 & 325 & 540 \
\hline
\end{array}$$
A) Jones Company
B) Parles Company
C) Brady Company
D) Chambers Company

Question

Using the following information, which company appears to be least solvent? $$\begin{array} { | l | r | r | r | r | } 
\hline \text { (in } \$ \text { Millions) } & \begin{array} { c } 
\text { Jones } \
\text { Company }
\end{array} & \begin{array} { c } 
\text { Parles } \
\text { Company }
\end{array} & \begin{array} { c } 
\text { Brady } \
\text { Company }
\end{array} & \begin{array} { c } 
\text { Chambers } \
\text { Company }
\end{array} \
\hline \text { Cash provided by operating activities for } 2014 & 140 & 295 & 110 & 200 \
\hline \text { Current liabilities for } 2013 & 230 & 335 & 205 & 300 \
\hline \text { Current liabilities for } 2014 & 280 & 375 & 240 & 360 \
\hline \text { Total liabilities for } 2013 & 600 & 440 & 275 & 500 \
\hline \text { Total liabilities for } 2014 & 720 & 530 & 325 & 540 \
\hline
\end{array}$$
A) Jones Company
B) Parles Company
C) Brady Company
D) Chambers Company

Quizplus · Accepted Answer

Jones Company has the lowest current ratio, which is a measure of a company's ability to pay its short-term obligations.

Using the Following Information, Which Company Appears to Be Least