The Following Information Refers to Annie's Attic and Its Competitors

question 144

Essay

The following information refers to Annie's Attic and its competitors in the antiques business:
$$\begin{array} { | l | c | c | } \hline & \text { Current Ratio } & \text { Quick Ratio } \\\hline \text { Annie's Attic } & 2.0 & 0.95 \\\hline \text { Bart's Basement } & 1.5 & 1.00 \\\hline \text { Chisolm's Collectibles } & 1.8 & 1.20 \\\hline \text { Martin's Marbles } & 1.9 & 0.80 \\\hline \text { Industry Average } & 2.0 & 1.00 \\\hline\end{array}$$
Required:
Comment on the relative liquidity positions of these companies.

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Definitions:

Bretton Woods System

An international monetary system established in 1944 that set up fixed exchange rates anchored by the U.S. dollar, which was convertible to gold.

Pegged Exchange Rates

An exchange rate regime where a country's currency value is fixed or tied to another currency or a basket of currencies.

U.S. Dollars

The official currency of the United States, widely used as a benchmark and reserve currency around the world.

Balance of Payments

A statement that summarizes an economy's transactions with the rest of the world for a specific time period.