Below are balance sheets for two firms with similar revenues. Amounts are in millions of dollars.

i) Which firm looks more risky for shareholders and why?

Assets Cash Accounts receivable Inventory Property, plant, and equipment Long-term debt investments Assets Cash Accounts receivable Inventory Property, plant, and equipment 17 Accounts payable 43 Long-term debt 102 194 104 Common equity 460 FIRM B Liabilities and Equity 15 72 107 289 483 Liabilities and Equity Accounts payable Long-term debt Common equity 14 200 246 460 37 200 246 483