LIQUIDITY. Portions of the financial statements for Aaron Corporation and Zygmunt Enterprises are reproduced below. Aaron and Zygmunt sell similar products to similar customers.

Identify which of these two firms appears to have greater liquidity. Explain your choice.

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AARON CORPORATION ZYGMUNT ENTERPRISES Cash $ 16,300 6,950 Accounts receivable 487,810 613,220 Inventory 607,530 206,150 Short-term investments in marketable securities 6,900 311,830 Total current assets 1,118,540 1,138,150 Accounts payable 639,750 194,170 Rent payable Interest payable Total current liabilities Long-term liabilities 286,100 58,400 193,420 225,910 1,119,270 478,480 950,000 1,200,000 Net income $ 31,210 $ 257,300