The cash ratios of four companies are listed below. Company Cash Ratio Juan Corp. 0.23 Rose, Inc. 0.14 Freelance, Inc. 0.20 Pioneer Corp. 0.28 Which company has the maximum ability to repay its current liabilities?

Pioneer Corp

Explanation:

The Cash Ratio is a measure of a Company's ability to pay off it s Current Liabilities with it's most liquid assets.

It is calculated by Dividing the Company's Cash and Cash Equivalents by it's Current Liabilities.

The higher the figure, the more capable of paying off their Current Liabilities with Cash the company are.

While it seems that all else being equal, they can all pay off their Current Liabilities, Pioneer Corp. has a Cash Ratio of 0.28 which is the highest listed there. This means that they have the MAXIMUM ability to pay off their Current Liabilities ably.

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in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation: