The following data has been extracted from financial statements of 2 companies. Both companies have the same current ratio. Do both companies have equal ability to pay its short-term obligations? Why?

	Company A	Company B
Current Asset
Cash	50000	4000
Account Recievable	120000	16000
Prepaid expenses	10000	10000
Inventory	170000	320000
Total Current Assets	350000	350000
Total Current Liabilities	175000	175000
Current Ratio	2:1	2:1