As of December 31, 2023, a company’s balance sheet shows the following information:

Assets	Liabilities and Equity
Cash: $250,000	Accounts Payable: $200,000
Accounts Receivable: $300,000	Short-term Borrowings: $100,000
Inventory: $500,000	Long-term Debt: $700,000
Prepaid Expenses: $75,000	Common Stock: $400,000
Property, Plant, and Equipment (net): $1,200,000	Retained Earnings: $650,000
Patents: $150,000

Calculate the Total Current Assets and explain their significance in assessing the company’s liquidity. Determine the Total Liabilities and describe how this figure impacts the company’s financial leverage and risk assessment.