Current assets and current liabilities for companies D and E are summarized as follows:
|
|
Company D |
Company E |
|
Current assets |
$400,000 |
$900,000 |
|
Current liabilities |
200,000 |
700,000 |
|
Working capital |
$200,000 |
$200,000 |
Required
Evaluate the relative solvency of companies D and E.