Short-Term Liquidity Ratios}

Three ratios calculated for Puckerman, Cohen, and Chang Companies for 2017 and 2018 follow.

\section*{Required:}
Explain which company appears to be the most liquid.
\section*{Cornerstone Exercise

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(in millions) Puckerman Cohen Chang Current ratio 12/31/18 2.8 to 1 2.3 to 1 1.8 to 1 12/31/17 2.0 to 1 1.5 to 1 2.2 to Inventory turnover ratio 12/31/18 6.9 times 5.8 times 8.0 times 12/31/17 7.6 times 5.8 times 9.6 times Quick ratio 12/31/18 2.5 to 1 2.1 to 1 0.5 to 12/31/17 1.0 to 1 1.4 to 1 1.2 to 1