1. The data below were extracted from the financial statements of two farms. Calculate their quick ratios and make a decision based on the ratio which farm you will supply with the fertilizer they have requested from your agro-chemical investment.

Crystal Farms: Cash (700), Inventory (1,200), Accounts payable (300), Interest payable on outstanding debt (200).

Misty Farms: Cash (400), Inventory (1,800), Accounts payable (250), Interest payable on outstanding debt (300).

1. Crystal has Quick Ratio of 1.4 while Misty has quick ratio of 0.73. Misty is in a better liquidity position than Crystal so it should get the supply.
2. Crystal has quick ratio of 1.4 while Misty has quick ratio of 0.73. Crystal is in a better liquidity position than Misty so it should get the supply.
3. Crystal has quick ratio of 3.8 while Misty has quick ratio of 2.18. Misty is in a better liquidity position than Crystal so it should get the supply.
4. Crystal has quick ratio of 3.8 while Misty has quick ratio of 2.18. Crystal is in a better liquidity position than Misty so it should get the supply.