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(Related to Checkpoint 4.1)(Liquidity analysis) The most recent balance sheet of Raconteurs, Inc., (in millions)...

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Accounting

(Related to Checkpoint 4.1)(Liquidity analysis) The most recent balance sheet of Raconteurs, Inc., (in millions) is found here:
a. Calculate Raconteurs' current ratio and acid-test (quick) ratio.
b. Benchmark ratios for the current and acid-test (quick) ratio are 1.49 and 1.22, respectively. What can you say about the liquidity of Raconteur's operations based on these two ratios?
a. Calculate Raconteurs' current ratio and acid-test (quick) ratio.
Raconteurs' current ratio is (Round to two decimal places.)
Raconteurs' acid-test ratio is (Round to two decimal places.)
A. Raconteurs' acid-test ratio indicates higher liquidity than its current ratio and Raconteur's acid-test ratio shows higher liquidity when compared against the industry average.
B. Based on its current ratio, Raconteurs, Inc. is slightly less liquid than the peer group since its current ratio is higher.
C. Raconteurs' acid-test ratio indicates lower liquidity than its current ratio and Raconteur's acid-test ratio shows lower liquidity when compared against the industry average.
D. Based on its current ratio, Raconteurs, Inc. is slightly more liquid than the peer group since its current ratio is higher.
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