LIQUIDITY What is liquidity? Use the following information to calculate the liquidity measure known as the "Current Ratio" for each company. Company A Company B Current Assets $250,000 $400,000 Current Liabilities $80,000 $250,000 Current Ratio - Current Assets/ Current Liabilities Which company has the more favorable Current Ratio, and why? Which financial statement(s) would you need in order to find this information on your own? (Circle all that apply) Balance Sheet Income Statement Cash Flow Statement