1. Liquidity ratios. Edison Stagg and Thornton have the following financial info

1. Liquidity ratios. Edison Stagg and Thornton have the following financial information at the close of business on July 10:Edison Stagg ThorntonCash $6000 $5000 $4000Short-term investments 3000 2500 2000Accounts receivable 2000 2500 3000Inventory 1000 2500 4000Prepaid expenses 800 800 800Accounts payable 200 200 200Notes payable: short-term 3100 3100 3100Accrued payables 300 300 300Long-term liabilities 3800 3800 3800a. 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?