The Current Ratio of a company is 4.5 and its Quick Ratio (Acid Test Ratio) is 0.7. The only current assets on its Balance Sheet are Cash, Accounts Receivables, and Inventory. From this data, it can be inferred that:

Current Liabilities are larger than their Current Assets

The company has high levels of long-term debt

Most of their current assets are made up of Cash and Accounts Receivables

Inventory forms a large part of their current assets