The following ratios are available for Bachus Inc. and Newton Inc.
|
Current
Ratio
|
Debt to
Assets Ratio
|
Earnings
per Share
|
|
|
Bachus Inc.
|
2:01
|
75%
|
$3.50
|
|
Newton Inc.
|
1.5:1
|
40%
|
$2.75
|
Compared to Newton Inc., Bachus Inc. has:
(a) higher liquidity, higher solvency, and higher profitability.
(b) lower liquidity, higher solvency, and higherprofitability.
(c) higher liquidity, lower solvency, and higher profitability.
(d) higher liquidity and lower solvency, but profitability cannot be compared based on information provided.