Anaylize and compare Smith Company and Jones Company are the two retailer competitors. The current assets and current liabilities for each company from recent balance sheets are as follows (in thousands)

Smith Co. Jones Co.

Current Assets:

Cash $547,189 $1,783,000

Accounts Receivable 93,384 ---------

Inventories 399,975 1,830,000

Other Current Assets 98,932 702,000

Total Current Assets $1,139,300 $4,315,000

Current Liabilities :

Accounts Payable $187,017 $1,243,000

Other Current Liabilities 298,983 1,210,000

Total Current Liabilities

1. Compute the working capital for each company.

2.Compute the current ratio for each company. Round to one decimal place.

3. Compute the current ratio for each company. Round to one decimal place.

4. Which company appears to have the greater short-term liquidity? Why?