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  3. the following information was drawn from the balan

The following information was drawn from the balance sheets of the Kansas and Montana...

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Question

Accounting

The following information was drawn from the balance sheets of the Kansas and Montana companies:

Current assets

Current AbLE sos

Kansas

$ 66,000

41, 100

Montana

$ 88,000

44000

Required

a. Compute the current ratio for each compani

  1. Which company has the greater likelihood of being able to pay its bills?
  2. Assume that both companies have the same amount of total assets. Speculate as to which company would produce the higher return-on-assets ratio.

complete this question by entering your answers in the tabs below.

References

Required A

Required B

Required C

Compute the current ratio for each company.

Note: Round vour answers to 2 decimal places

Current Ratio

Kansas

Montana

to 1

to

Answer & Explanation Solved by verified expert
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