As of December 31, 2023, the balance sheet of a company lists the following assets and liabilities:

• Cash: $250,000
• Accounts Receivable: $300,000
• Inventory: $500,000
• Prepaid Expenses: $75,000
• Property, Plant, and Equipment (net): $1,200,000
• Patents: $150,000

Liabilities:

• Accounts Payable: $200,000
• Short-term Borrowings: $100,000
• Long-term Debt: $700,000

Equity:

• Common Stock: $400,000
• Retained Earnings: $650,000

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.