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Evaluating Firm Liquidity The following financial information is taken from the balance sheets of the Drucker Company and the Ito Company: Drucker Ito Current assets

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Evaluating Firm Liquidity The following financial information is taken from the balance sheets of the Drucker Company and the Ito Company: Drucker Ito Current assets $270,000 $60,000 Current liabilities 120,000 25,000 Calculate the current ratio for each company. Round answers to two decimal places, when appropriate. Drucker 0 Ito 0 Which firm has a higher level of liquidity? 1

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