26. What ratios and other forms of analysis would you use to examine a company's ability to pay its debts in the short term? 27. Alpha Corporation has working capital of $840,000, and...

26. What ratios and other forms of analysis would you use to examine a company's ability to pay its debts in the short term?

27. Alpha Corporation has working capital of $840,000, and Omega Corporation has working capital of $620,000. Therefore, is it safe to conclude that Alpha is more liquid than Omega?

28. Drake Corporation and Wilson Company are in different industries. Drake's current ratio is 1.89, while Wilson's current ratio is 1.65. Therefore, is it safe to conclude that Drake's liquidity position is better than that of Wilson?

29. How does the quick ratio differ from the current ratio?

30. Browning Company's current ratio for 2011 was 1.42, which was slightly above the current ratio for similar companies in its industry. Browning's quick ratio for 2011 was 0.68, which is substantially lower than for similar companies in its industry. What conclusion would you reach based on this information?