IGF Foods Company is a large, primarily domestic, consumer foods company involved in the manufacture, distribution and sale of a variety of food products. Industry averages are derived from Troy's The Almanac of Business and Industrial Financial Ratios. Following are the 2018 and 2017 comparative balance sheets for IGF. (The financial data we use are from actual financial statements of a well-known corporation, but the company name used is fictitious and the numbers and dates have been modified slightly.)

Liquidity refers to a company's cash position and overall ability to obtain cash in the normal course of business. A company is said to be liquid if it has sufficient cash or is capable of converting its other assets to cash in a relatively short period of time so that currently maturing debts can be paid.
Required:
1. Calculate the current ratio for IGF for 2018. The average ratio for the stocks listed on the New York Stock Exchange in a comparable time period was 1.5. What information does your calculation provide an investor?
2. Calculate IGF's acid-test or quick ratio for 2018. The ratio for the stocks listed on the New York Stock Exchange in a comparable time period was .80. What does your calculation indicate about IGF's liquidity?

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GF FOODS COMPANY Comparative Balance Sheets Years Ended December 31. 2018 and 2017 $ in millions) 2018 2017 Assets Current assets: $ 48 347 358 914 212 $1,879 2,592 800 74 $5,345 Cash Accounts receivable Marketable securities $ 142 320 874 154 $1,490 2,291 843 60 $4,684 Prepaid expenses Total current assets Property, plant, and equipment (net) Intangibles (net) Other assets Total assets Liabilities and Shareholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable Current portion of long-term debt $ 254 493 518 208 $1,473 534 407 $2,414 276 496 115 54 $941 728 344 $2,013 Total current liabilities Long-term debt Deferred income taxes Total liabilities Shareholders' equity: Common stock Additional paid-in capital Retained earnings 180 21 2.730 $2,931 $5,345 180 63 2,428 $2,671 $4,684 Total shareholders' equity Total liabilities and shareholders' equity