Two companies: MaxIncome and SafetyFirst, producing similar products have completely different short-term financial management policies. Financial statements for each of the companies are as follows:

	MaxIncome	SafetyFirst
Balance Sheet
Cash and Marketable Securities	$6,598	$17,855
Accounts Receivable	15,125	25,632
Inventory	18,365	46,123
Net Long-term Assets	48,306	48,306
Total Assets	$88,394	$137,916
Short-term Bank Loans	$18,232	$5,362
Accounts Payable	18,185	11,565
Long-term Debt	4,930	77,816
Common Stock	33,562	33,562
Retained Earnings	13,485	9,611
Total Liabilities and Equity	$88,394	$137,916
Income Statement
Sales	$265,233	$302,555
COGS	162,900	177,930
General, Selling and Administrative Expenses	87,716	118,617
Net Income	$8,770	$3,605

Calculate the current ratio, quick ratio, net working capital, and cash cycle for both firms. Discuss the risk-return tradeoff of a firm's working capital policy in terms of short-term vs long-term debt financing using these two companies as examples.

Please show all steps/calculations