The following schedule summarizes the current assets reported in the year-end balance sheets of Costello Laboratories, a company that develops, manufactures, and markets health care products, and Triangle Air Lines, a major provider of passenger, freight, and mail air transportation:

Costello Triangle Laboratories Air Lines

(Dollars in thousands)

Current Assets Cash and equivalents $ 300,676 $ 1,180,364 Investment securities 78,149 —

Accounts receivable, net of allowance 1,336,222 1,024,869 Supplies — 90,593 Inventories 940,533 —

Prepaids and other 929,955 526,094 Total current assets 3,585,535 2,821,920 Noncurrent, total 4,103,034 9,049,103 Total assets $7,688,569 $11,871,023 Required

a. Identify the major differences between these two firms in the composition of current assets. Try to explain these differences in terms of the types of goods and services that each company produces.

b. Based solely on the information provided here, which company appears to be more liquid?