You are given the following information for two companies, ABC and XYZ, at the end of 2015 Company Cash Accounts receivable Inventory ABC 1,000 1,000 30,000 XYZ 2,000 1,000 2.000 32,000 10,000 32090 5.000 10,000 50% Current assets Current liabilities Current ratio CA/CL Quick ratio (CA-Inv)/CL 20% 30% Required a) Compare the current ratio and quick ratio. Assume ABC s inventory is slow-moving real estate while XYZ's inventory is fast-moving groceries. Briefly explain why ABC or XYZ have a better ability to repay liabilities in the short term? b) Contrast cash with accounts receivable. Summarize two reasons why cash is listed ahead of accounts receivable in the statement of financial position