Edison, Stagg, and Thornton have the following financial information at the close of business on July 10:

Compute the current and quick ratios for each of the three companies. (Round calculations to two decimal places.) Which firm is the most liquid? Why?

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Edison Stagg Thornton $6,000 $5,000 $4,000 Cash Short-term investments 3,000 2,500 2,000 2,000 3,000 Accounts receivable 2,500 4,000 Inventory 1,000 2,500 Prepaid expenses 800 800 800 Accounts payable 200 200 200 Notes payable: short-term 3,100 3,100 3,100 Accrued payables 300 300 300 Long-term liabilities 3,800 3,800 3,800