Marquis and Bloom Company are similar firms that operate in the same industry. The following data on each company is below:

21

Marquis Company

Company Bloom

01:16:02

2020

2021

2022

2020

2021

2022

Current Ratio

2.2

2.9

3.0

2.4

2.0

2.0

Acid-test ratio

1.8

2.4

3.2

1.1

1.3

10

Accounts Receivable Turnover

11.5

11.0

12.0

12.9

12.5

13.4

Merchandise Inventory Turnover

9.8

9.2

9.9

11.8

13.9

14.1

Working Capital

$55,000

$72,000

$78,000

$69,000

$77,000

$89.000

Required:

Compare the liquidity positions of both companies. Include a discussion the relative ability of both companies to meet current obligations and to use current assets efficiently.