A firm with assets that will convert to cash within the next 12 months, in excess of its obligations to

pay cash in the same time interval, has

1. Positive working capital and a current ratio that is less than one.

2. Positive working capital and a current ratio that exceeds one.

3. Negative working capital and a current ratio that exceeds one.

4. Negative working capital and a current ratio that is less than one.

5. A serious liquidity problem.