Current assets and current liabilities for companies R and T are summarized as follows.
|
|
Company R |
Company T |
|
Current assets |
$400,000 |
$800,000 |
|
Current liabilities |
200,000 |
400,000 |
|
Working capital |
$200,000 |
$400,000 |
Required
Evaluate the relative solvency of companies R and T.