A liquid asset can be converted quickly to cash with little sacrifice in its value. Which of the following asset classes is generally considered to be the least liquid? Cash Accounts receivable Inventories The most recent data from the annual balance sheets of Pellegrini Southern Inc. and Scramouche Opera Company are as follows: Balance Sheet December 31st (Millions of dollars) Pellegrini Southern Scramouche Opera Company Scramouche Opera Company Pellegrini Southern Inc. Inc. Assets Current assets Cash $2,009 $0 $0 $1,291 Liabilities Current liabilities Accounts payable Accruals Notes payable Total current liabilities 0 735 Accounts receivable 443 473 Inventories 2,156 4,900 1,386 3,150 2,510 2,953 2,362 2,362 Total current assets Long-term bonds 2,888 Net fixed assets 3,609 6,562 3,850 3,850 Total debt Net plant and equipment 5,250 1,422 1,138 Common equity Common stock Retained earnings Total common equity 766 612 2,188 1,750 Accounts receivable 735 473 Accruals Inventories 443 0 2,156 Notes payable Total current assets 1,386 3,150 4,900 Total current liabilities 2,510 2,953 2,362 2,362 Net fixed assets Long-term bonds 3,609 Net plant and equipment 3,850 3,850 Total debt 2,888 5,250 6,562 Common equity Common stock 1,422 1,138 Retained earnings 766 612 Total assets Total common equity Total liabilities and equity 2,188 1,750 8,750 7,000 8,750 7,000 Pellegrini Southem Inc.'s current ratio is and its quick ratio is and its quick ratio is ; Scramouche Opera Company's current ratio is Note: Round your values to four decimal places. Which of the following statements are true? Check all that apply. Scramouche Opera Company has a better ability to meet its short-term liabilities than Pellegrini Southern Inc.. A current ratio of 1 indicates that the book value of the company's current assets is equal to the book value of its current liabilities. An increase in the quick ratio over time usually means that the company's liquidity position is improving and that the company is managing its short-term assets well. Compared to Pellegrini Southern Inc., Scramouche Opera Company has less liquidity and a lower reliance on outside cash flow to finance its short-term obligations. An increase in the current ratio over time always means that the company's liquidity position is improving