For this question, use the following simplified balance sheets and income statements for three firms. Your Arm Competitor A Competitor B Balance Sheet (in Million) Non Current Assets $18,000 $12,000 $7,000 Current Assets $9,000 $6,000 $7,000 Account Receivable $4,500 $2,800 $2,000 Inventory $4,000 $1,200 $2,000 Other current assets Unknown Unknown Unknown Total Liability $7,500 $10,000 $5,000 Current Liabilities $5,000 $7,500 $2,500 Stockholders' Equity $19,500 $8,000 $9,000 Income Statement (in Million) Sales Operating Income Net Income $37,000 $6,500 $2,500 $24,000 $3,000 $1,500 $14,000 $1,500 $900 Which firm has highest bargaining power against vendors (e.g., raw material vendors, part supplier)? Explain why you chose the ratio and show your work (3 points). It is not difficult to show your work using simple operations such as +, -, /, * and symbols such as (), = . After showing your work, be sure to specify which firm(s) has the highest bargaining power. Financial Ratios > Liquidity Ratio Current Ratio = Current Asset / Current Liability Quick Ratio = (Current Asset - Inventory) / Current Liability Leverage Ratio Debt-to-asset = Total Liability / Total Asset Debt-to-equity = Total Liability / Shareholders' Equity Activity Ratio Inventory Turnover = Sales / Inventory AR Turnover = Sales / Account Receivable