The following selective information is available to the Maxine Company on December 31, 2020:

Cash $42,000

Marketable Securities 32,000

Accounts Receivable 67,000

Inventory 92,000

Prepaid Expenses 23,000

Investments 34,000

Fixed Assets (Net) 113,000

Accounts Payable 48,000

Salaries Payable 26,000

Bonds Payable (Due in 5 Years) 75,000

Common Stock 10,000

Additional Capital Paid-in Capital 72,000

Retained Earnings 95,000

Other Comprehensive Income 77,000

Required:

a. Compute the current and acid test ratios for Maxine Company.

b. Evaluate Maxine's liquidity in light of your findings.