The Following Information Refers to Percy's Records and Its Competitors

question 74

Essay

The following information refers to Percy's Records and its competitors in the music store business.
$$\begin{array} { | l | r | r | } \hline & \begin{array} { c } \text { Curreat } \\\text { Ratio }\end{array} &{ \begin{array} { c } \text { Quick } \\\text { Ratio }\end{array} } \\\hline \text { Percy's Records } & 2.0 & 0.95 \\\hline \text { Jewel CDs } & 1.5 & 1.00 \\\hline \text { Rudy's Raps } & 1.8 & 1.20 \\\hline \text { Marvin's Jazz } & 1.9 & 0.80 \\\hline \text { Industry Average } & 2.0 & 1.00 \\\hline\end{array}$$ Required:
Comment on the relative liquidity positions of these companies.

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Definitions:

Adequacy

The sufficiency of something in meeting a specific need or standard, often evaluated in terms of quality or quantity.

Consideration

The value promised to be transferred in a contract, making it legally binding.

Endorse

To give one's public approval or support to someone or something, or to sign a document thus validating it.

Bill of Exchange

A written, unconditional order by one party directing another party to pay a specified sum of money to a third party on demand or at a set date.