Liquidity Ratios

Selected balance sheet and income statement information is presented for four companies within the same industry (in millions):

	Company 1	Company 2	Company 3	Company 4
Current assets	$1,892	$2,601	$3,987	$2,201
Current liabilities	$ 854	$2,887	$3,334	$1,453
Total liabilities	$3,891	$7,011	$6,533	$3,942
Total liabilities and stockholders equity	$4,843	$13,460	$13,045	$6,566

Based on current ratio calculations for all companies, which company is more liquid?

Select one:

a. Company 3 b. Company 1 c. Company 4

d. Company 2