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?
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