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

question 9

Essay

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

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Definitions:

Gain on Sale

The profit earned from selling an asset for more than its book value or purchase price.

Cash

The amount of currency and liquid instruments in a company's possession, used for financial transactions.

Extraordinary Repair

Significant restorations or overhauls that significantly extend the useful life of an asset beyond its original projection.

Manufacturing Warehouse

A facility where goods are produced or stored, typically involving both machinery and labor in the production process.