Final answer:
The subject question pertains to the financial metrics known as the current ratio and quick ratio, which measure a company's liquidity. The current ratio is a general liquidity measure, while the quick ratio is more stringent, excluding inventory. Specific figures from the company's balance sheet are required to calculate these ratios for N&B Equipment Company.
Step-by-step explanation:
The current ratio and quick ratio are both financial metrics used to assess a company’s liquidity. The current ratio is calculated by dividing the company’s current assets by its current liabilities. This ratio indicates whether a company has enough assets to cover its short-term obligations. On the other hand, the quick ratio is a more stringent test of liquidity. It’s calculated by taking the sum of a company’s cash, marketable securities, and accounts receivable, then dividing by its current liabilities. This ratio excludes inventory from current assets, as inventory is not as easily liquidated.
For N&B Equipment Company, to find the values for these ratios, you would need the specific amounts of their current assets, liabilities, and the components for the quick ratio such as cash, marketable securities, and receivables from their balance sheet.