All of the following statements are true regarding ratios that measure a company's ability to pay current liabilities except

	1.	inventory and prepaid expense are included in the numerator of the current ratio, but not in the numerator of the acid-test ratio
	2.	working capital = current assets - current liabilities
	3.	in most industries, a current ratio of 2.0 is considered adequate
	4.	a higher current ratio is always preferred to a lower current ratio