A company has current assets of $300,000, including cash of $50,000, accounts receivable of $150,000, and inventory of $100,000. Current liabilities are $120,000. Calculate the current ratio. Discuss what this ratio reveals about the company’s liquidity and its ability to meet short-term obligations. Analyze the potential factors that could affect the current ratio, such as changes in working capital components and short-term debt levels. Consider the implications of a high or low current ratio for the company’s financial health and operational flexibility. Discuss the strategic importance of managing liquidity effectively, including maintaining adequate cash reserves, optimizing receivables and inventory, and managing payables efficiently. Explain how the current ratio compares to other liquidity ratios, such as the quick ratio and cash ratio, in providing a comprehensive view of the company’s short-term financial position.