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. JRLs 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.