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The most recent data from the annual balance sheets ofPellegrini Southern Corporation and Jing Foodstuffs Corporation areas follows:

Balance Sheet December 31st (Millions of dollars)

	Jing Foodstuffs Corporation	Pellegrini Southern Corporation		Jing Foodstuffs Corporation	Pellegrini Southern Corporation
Assets			Liabilities
Current assets			Current liabilities
Cash	$4,879	$3,136	Accounts payable	$0	$0
Accounts receivable	1,785	1,148	Accruals	1,076	0
Inventories	5,236	3,366	Notes payable	6,096	5,737
Total current assets	$11,900	$7,650	Total current liabilities	$7,172	$5,737
Net fixed assets			Long-term bonds	8,765	7,013
Net plant and equipment	9,350	9,350	Total debt	$15,937	$12,750
			Common equity
			Common stock	$3,453	$2,763
			Retained earnings	1,860	1,487
			Total common equity	$5,313	$4,250
Total assets	$21,250	$17,000	Total liabilities and equity	$21,250	$17,000

Pellegrini Southern Corporation’s current ratio is___, and itsquick ratio is___; Jing Foodstuffs Corporation’s current ratiois___, and its quick ratio is___. Note: Round your values to fourdecimal places.

Which of the following statements are true? Check all thatapply.

Pellegrini Southern Corporation has less liquidity but also agreater reliance on outside cash flow to finance its short-termobligations than Jing Foodstuffs Corporation.

If a company’s current liabilities are increasing faster thanits current assets, the company’s liquidity position isweakening.

If a company has a quick ratio of less than 1 but a currentratio of more than 1 and if the difference between the two ratiosis large, then the company depends heavily on the sale of itsinventory to meet its short-term obligations.

Pellegrini Southern Corporation has a better ability to meet itsshort-term liabilities than Jing Foodstuffs Corporation.

An increase in the current ratio over time always means that thecompany’s liquidity position is improving.