Case Assets Liabilities Average Assets Net Income Company 1 $ 90,500 $ 11,765 $ 100,000 $ 20,000 Company 2 64,000 46,720 40,000 3,800 Company 3 32,500 26,650 50,000 650 Company 4 147,000 55,860 200,000 21,000 Company 5 92,000 31,280 40,000 7,520 Company 6 104,500 52,250 80,000 12,000

Case Debt Ratio ROA Company 1 Company 2 Company 3 Company 4 Company 5 Company 6

Of the six companies, which business relies most heavily on creditor financing?

	Company 1
	Company 2
	Company 3
	Company 4
	Company 5
	Company 6

c.

Of the six companies, which business relies most heavily on equity financing?

	Company 1
	Company 2
	Company 3
	Company 4
	Company 5
	Company 6

d.

Which two companies indicate the greatest risk? (Click the box with a check mark for correct answers and click to empty the box for the wrong answers.)

	Company 1
	Company 2
	Company 3
	Company 4
	Company 5
	Company 6

e.

Which two companies earn the highest return on assets? (Click the box with a check mark for correct answers and click to empty the box for the wrong answers.)

	Company 1
	Company 2
	Company 3
	Company 4
	Company 5
	Company 6

f.	Which one company would investors likely prefer based on the risk