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Consider the information for two competitors in the same industryCompany A and Company Band then answer the following questions. Company A - All figures are

Consider the information for two competitors in the same industryCompany A and Company Band then answer the following questions.

Company A - All figures are in thousands

Net Income = $2,737; Sales Revenue = $69,495; Total Stockholder Equity = $10,953; Cost of Goods Sold = $51,320; Inventory = $8,309; PPE = $11,990; Accounts Receivable = $22,105

Company B - All figures are in thousands

Net Income = $1,910; Sales Revenue = $15,130; Total Stockholder Equity = $7,725; Cost of Goods Sold = $12,123; Inventory = $875; PPE = $3,295; Accounts Receivable = $8,013

  1. Calculate ROE, ART, INVT, and PPET (calculations should be included in an appendix after the references page).
  2. Judge which company is more efficient at using its assets.
  3. Hypothesize which company may have excess inventory.
  4. Explain which company is using its plant and equipment to its best advantage.
  5. Anticipate what C2C cycle time information may contribute to understanding inventory conditions in each company.

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