Which of the following statements are true? Check all that apply.

Blue Hamster Manufacturing Inc. has a better ability to meet its short-term liabilities than Blue Moose Home Builders

If a company’s current liabilities are increasing faster than its current assets, the company’s liquidity position is weakening.

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

Compared to Blue Moose Home Builders, Blue Hamster Manufacturing Inc. has less liquidity and a relatively greater reliance on outside cash flow to finance its short-term obligations.

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