Business, 15.02.2020 01:16 ayoismeisalex

Blue Moose Home Builders’s quick ratio is , and its current ratio is ; Blue Hamster Manufacturing Inc.’s quick ratio is , and its current ratio is .

Which of the following statements are true? Check all that apply.

Blue Hamster Manufacturing Inc. has a better ability to meet its short-term liabilities than Blue Moose Home Builders

If a company’s current liabilities are increasing faster than its current assets, the company’s liquidity position is weakening.

If a company has a quick ratio of less than 1 but a current ratio of more than 1 and if the difference between the two ratios is large, then the company depends heavily on the sale of its inventory to meet its short-term obligations.

Compared to Blue Moose Home Builders, Blue Hamster Manufacturing Inc. has less liquidity and a relatively greater reliance on outside cash flow to finance its short-term obligations.

An increase in the current ratio over time always means that the company’s liquidity position is improving.

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Blue Moose Home Builders’s quick ratio is , and its current ratio is ; Blue Hamster Manufacturing In...