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Compare the liquidity positions of two companies, Company X and Company Y, based on their current ratios. Company X has current assets of $800,000 and
Compare the liquidity positions of two companies, Company X and Company Y, based on their current ratios. Company X has current assets of $800,000 and current liabilities of $500,000, while Company Y has current assets of $1,200,000 and current liabilities of $800,000. Calculate the current ratio for each company and interpret the results in terms of their short-term solvency.
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