Based on Exhibit 1, which ratio indicates lower liquidity risk for Company A compared with Company B?

A . Cash ratio.

B . Quick ratio.

C . Current ratio.

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EXHIBIT 1 Common-Size Balance Sheets for Company A, Company B, and Sector Average Company A Company B Sector Average ASSETS Current assets Cash and cash equivalents 5 Marketable securities 5 50 Accounts receivable, net 5 15 Inventories 15 20 7226 Prepaid expenses 5 15 11 Total current assets 35 55 48 Property, plant, and equipment, net 40 35 37 Goodwill 25 0 8 Other assets 0 10 7 Total assets 100 100 100 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable Short-term debt Accrued expenses Total current liabilities Long-term debt Other non-current liabilities Total liabilities Total shareholders' equity Total liabilities and shareholders' equity 45 = [ 10 10 25 10 0 5 35 25 20 0 80 55 10 15 3 28 28 7 63 20 45 37 100 100 100