Question: Quick Ratio and Current Ratio Comparison : Using the following balance sheet data: Cash $40,000, Accounts Receivable $60,000, Inventory $80,000, Current Liabilities $100,000. Calculate both

  1. Quick Ratio and Current Ratio Comparison: Using the following balance sheet data: Cash $40,000, Accounts Receivable $60,000, Inventory $80,000, Current Liabilities $100,000. Calculate both the quick ratio and the current ratio. Compare these liquidity ratios and discuss what they reveal about the company's ability to meet short-term obligations.

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