Given below is information for Xu Corporation and Yang Computers, Inc. at the end of 2016.
1 Using the information provided above, compute the following for each company at December 31, 2016:
A. Current ratio
B. Acid-test ratio
2 Comment briefly on the liquidity of each of these two companies. Which appears to be more liquid?
3 What other ratios would help you to more fully assess the liquidity of these companies?

Question

Given below is information for Xu Corporation and Yang Computers, Inc. at the end of 2016.
  1 Using the information provided above, compute the following for each company at December 31, 2016:
A. Current ratio
B. Acid-test ratio
2 Comment briefly on the liquidity of each of these two companies. Which appears to be more liquid?
3 What other ratios would help you to more fully assess the liquidity of these companies?

Quizplus · Accepted Answer

The Answer of Given below is information for Xu Corporation and Yang Computers, Inc. at the end of 2016.
  1 Using the information provided above, compute the following for each company at December 31, 2016:
A. Current ratio
B. Acid-test ratio
2 Comment briefly on the liquidity of each of these two companies. Which appears to be more liquid?
3 What other ratios would help you to more fully assess the liquidity of these companies?

Given Below Is Information for Xu Corporation and Yang Computers