Use the Following Selected Financial Information to Compare These Two

Use the following selected financial information to compare these two companies at December 31,Year 1,and to answer the questions that follow.
$\begin{array}{lcc} \text { Cash } & \$ 340,800 &\$100,200\\ \text { Short-term investments } & 12,000 &7,600\\ \text { Accounts receivable } & 413,300 &60,000\\\text { Inventories } & 200,000 &39,000\\\text { Other current assets } &\underline{7,400}&\underline{1,000}\\\text { Total current assets }&973,500&207,800\\\\\text { Total current liabilities } & 860,900 & 150,000 \\\text { Long-term liabilities } & 5,000,400 & 300,500 \\\text { Shareholders' equity } & 2,400,300 & 800,700 \\& & \\\text { Cash flows from operating activities } & 750,000 & 290,000\end{array}$
Calculate working capital and the short-term liquidity ratios for these two companies for Year 1 and comment on their relative liquidity.