Liquidity ratio$$Josh Smith has compiled some of his personal financial data in order to determine his liquidity position. The data are as$$ follows:

Account

Amount

Cash

$$3,160$

Marketable securities

$1,070$

Checking account

$760$

Credit card payables

$1,230$

$$Short$-$term notes payable

$960$

a$.$ Calculate$$ Josh's liquidity ratio.

b$.$ Several of$$ Josh's friends have told him that they have liquidity ratios of about $1\mathrm{.}7.$ How would you analyze$$ Josh's liquidity relative to his$$ friends?

Question content area bottom

Part $1$

a$.$ Josh's liquidity ratio is enter your response here. $($Round to two decimal$$ places.$)$

Part $2$

b$.$ Several of$$ Josh's friends have told him that they have liquidity ratios of about $1\mathrm{.}7.$ How would you analyze$$ Josh's liquidity relative to his$$ friends?$($Select all the answers that$$ apply.$)$

A$.$

$$Josh$\text{'}$s ratio indicates that he is in a relatively inferior position to satisfy his existing$$ short$-$term debt obligations as they come due.

B$.$

$$Josh$\text{'}$s ratio indicates that he is in a relatively better position to satisfy his future$$ short$-$term debt obligations as they come due.

C$.$

Since$$ Josh's liquidity ratio exceeds $1\mathrm{.}7,$ Josh has less liquidity than his friends.