QS 13-20 (Algo) Analyzing short-term financial condition LO A1 Following is information for Morgan Company and Parker Company, which are similar firms operating in the same industry. Current ratio Morgan 3.0 Parker 4.5 Acid-test ratio 2.3 4.1 Accounts receivable turnover 31.8 17.7 Inventory turnover 25.5 15.8 1. Based on current ratio and acid-test ratio, which company appears better positioned to pay current liabilities? 2. Based on accounts receivable turnover, which company converts its receivables into cash more frequently? 3. Based on inventory turnover, which company appears to hold inventory for the least amount of time? 1. Based on current ratio and acid-test ratio, which company appears better positioned to pay current liabilities? 2. Based on accounts receivable turnover, which company converts its receivables into cash more frequently? 3. Based on inventory turnover, which company appears to hold inventory for the least amount of time?