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1) A company has the following items for the fiscal year 2020: Cash & cash equivalent = 2 million Short-term securities = 3 million Account receivables (A/R) = 1

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1) A company has the following items for the fiscal year 2020:

• Cash & cash equivalent = 2 million
• Short-term securities = 3 million
• Account receivables (A/R) = 1.5 million
• Inventory = 8.5 million
• Total current liabilities = 8 million

Calculate the company’s current ratio and quick ratio (You need to show (1) the formula and (2) your calculation process.)