Calculating Liquidity Ratios The balance sheets for Red Oak Inc. and Birch Co. reflect the following: Red Oak Birch Current assets Cash $ 11,500 $ 23,000 Short-term investments 6,900 Accounts receivable 57,500 81,400 Inventory 39,100 11,500 Other 11,500 13,800 Noncurrent assets 655,500 729,100 Total assets $782,000 $858,800 Current liabilities $ 69,000 $ 69,000 Long-term liabilities 69,000 529,000 Stockholders' equity 644,000 260,800 Total liabilities and stockholders' equity $782,000 $858,800 Calculate the following ratios and comment on the results. Note: Enter the answer rounded to two digits after the decimal; for example, enter 1.42 for 1.424, or 1.43 for 1.425. Ratio Red Oak Birch a. Current ratio b. Quick ratio Compared to Birch Company, Red Oak has a: Liquidity position