Companies A, B, and C are three companies in the interior design industry. The following information was determined by analyzing their financial statements for the year 2014:

	COMPANY A	COMPANY B	COMPANY C
Gross profit percent	31.5%	30.6%	28.4%
Receivables turnover	?	?	?
Current ratio	0.60	1.10	1.60
Debt-to-assets	0.30	0.55	0.67
Asset turnover	2.70	2.10	3.50
Net profit margin	5.30%	4.80%	7.10%
Return on equity	9.00%	8.60%	9.80%
Earnings per share	$1.57	$1.15	$0.52
Inventory turnover	4.80	3.90	6.00

Calculate the Receivables Turnover and include it in the blank Receivable Turnover column of the below chart for each company given the following key facts:

COMPANY	KEY FACTS	ANSWER WHAT IS THE RECEIVABLE TURNOVER?
A	Sales Revenue = 1,000,000 Cost of Goods Sold = 400,000 2018 Receivables = 100,000 2019 Receivables = 150,000
B	Sales Revenue = 750,000 Cost of Goods Sold = 300,000 2018 Receivables = 100,000 2019 Receivables = 200,000
C	Sales Revenue = 1,250,000 Cost of Goods Sold = 500,000 2018 Receivables = 100,000 2019 Receivables = 300,000

Answer the following questions regarding Companies A, B, and C.

QUESTON	ANSWER (COMPANY A, B, C)	EXPLAIN YOUR RATIONALE
(a) Which company is most likely to be able to meet its short-term obligations?
(b) Which company is most solvent?
(c) Which company is the least profitable?
(d) Which company generates the most sales revenue from its asset base?
(e) Which company has better liquidity?
(f)Which company would be viewed by a bank to be the safest company to lend money to?