On December 31, 2014, Big River Company had $1 million of current assets and $900,000 of current

Question:

On December 31, 2014, Big River Company had $1 million of current assets and $900,000 of current liabilities. On the same day, Small Fry Company had $200,000 of current assets and $100,000 of current liabilities. Calculate the working capital and current ratio for both companies and compare the results. Which liquidity measure is more relevant?