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Mega Stores Global is looking to acquire Raechels Corner Stores. With reference to the comparative balance sheet, describe tUse the following comparative balance sheets to answer Questions 7-9 that follow. Raechels Corner Stores Comparative Balance

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Matter 1 : The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year. It tells investors and analysts how a company can maximize the current assets on its balance sheet to satisfy its current debt and other payables . As we can see in the balance sheet they have current assets 279953 and current liabilities of 347579 which make the current ratio 0.8 which is not good it indicates that in the short time they might not be able to repay there debt which is not good

Matter 2 current assets in 2019 were 179733 whereas in 2020 it increased to 279953 . Which means the current assets are are increasing at a rate of 55 percent which is very good

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