The following information is available for Flanders and its two main competitors in the industry, Sanders and Anders: 
The industry standard for the current ratio is 1.8 and the industry standard for the acid-test ratio is 1.
Required:
1. Calculate the current ratio and acid-test ratio for each firm.
2. Rank the firms in decreasing order of liquidity.
3. Comment on Flanders' relative liquidity position.
Definitions:
Tax Shield
A reduction in taxable income for individuals or corporations achieved through claiming allowable deductions.
Tax Rate
The percentage at which an individual or corporation is taxed. The government sets the rate, which can apply to income, capital gains, or other financial figures.
Straight-Line Depreciation
A procedure for assigning the cost of a solid asset over its productive lifetime in equal annual figures.
Marginal Tax Rates
The rate at which an individual or corporation's next dollar of taxable income is taxed.
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