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3. You made copies of some financial statements of a bank and a manufacturing company, but when you dropped the pages, they got shuffled.
3. You made copies of some financial statements of a bank and a manufacturing company, but when you dropped the pages, they got shuffled. Unfortunately, you didn't copy the names of the companies on each page, so you don't know which is which. a. You examine the assets and see that one has more dollars of cash than the other. Is that one more likely the bank? Explain why or why not. b. You also notice that one has assets composed of 40% Property Plant and Equipment and 20% "loans to customers." Is that more likely a bank? Explain. c. On the income statement, you observe that one firm has interest expenses that account for 10% of its total expenses whereas the other has 40% of its expenses as interest. Which is more likely the banking firm? Explain.
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