JRL's financial statements contain the following information:

Cash ......................................$400,000

Marketable securities........... 115,000

Accounts receivable ..............800,000

Inventory ................................950,000

Accounts payable ..................575,000

Accrued expenses .................180,000

Long-term debt ......................900,000

Cost of goods sold .................1,000,000

Required: 

Assume the accounts payable balance is all trade payables and opening and closing balances are the same. Round your answers to two decimal places.

1. What is its current ratio?

2. What is its quick ratio?

3. What is its cash ratio?

4. What is the trade payable turnover ratio?

5. Discuss JRL's liquidity using these ratios. JRL’s current ratio depends on how liquid JRL's _____?_____ (accounts receivable and accounts payable/cash and marketable securities/inventory and accounts receivable) are. If the ______?______ (inventory/long-term debt/marketable securities) is slow moving, then the quick ratio may be a better indicator of liquidity. If accounts receivable may be difficult to collect, the ______?______ (cash ratio/current ratio/quick ratio) is best indicator of liquidity.