The following information pertains to Z-Mart,its competition,and the industry standards. 
The industry standard for the current ratio is 1.8 to 1.The industry standard for the acid-test ratio is 1 to 1.
Instructions:
(1)Calculate the current ratio and quick ratio for each firm.
(2)Rank the firms in decreasing order of liquidity.
(3)Comment on Z-Mart's relative position.
Definitions:
Inelastic Demand
Refers to a situation where the demand for a product is relatively unresponsive to changes in price.
Inelastic Demand
A situation where the demand for a product does not significantly change with a change in price.
Good Substitutes
Products or services that can be used in place of each other, with consumers willing to switch from one to the other if the price or quality changes.
Necessity
Goods or services considered essential for basic human survival and well-being, such as food, water, and shelter.
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