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Given the following financial information: Income Statement (2019) Balance Sheet (2019) (Income statement and balance sheet numbers are in millions) Revenue $3,047 Cash 29 A/P

Given the following financial information:

Income Statement (2019) Balance Sheet (2019) (Income statement and balance sheet numbers are in millions)

Revenue $3,047 Cash 29 A/P 475

CGS Expense 2,692 A/R 443 N/P 168

SG&A Expense 176 Inventory 454 Total C/L 643

Depr. Expense 84 Tot. Curr Asset 926 L-T Debt 210

EBIT 95 Net PP&E 55 Total Liab. 853

Interest Expense 12 Goodwill 214 Common Stock 386 Taxes 22 Intang. Assets 121 Treasury Stock -325

Net Income 61 Other L-T Assets 72 Ret. Earnings 474

Total Assets 1,388 Total Stock Eq 535

Tot. Liab &OE 1,388

12A.What type of firm does the above financial information most likely represent?

  1. Manufacturer
  2. Insurer
  3. Distributor
  4. Hospital
  5. Generic Pharmaceutical

12B. Describe the evaluation you performed to determine your answer in #14A.

12C. Evaluate the firms Liquidity (use 2 ratios).

12D. Evaluate the firms leverage (use 2 ratios).

12E. If you were to focus on improving profitability, your top priority should be to reduce:

  1. Accounts Receivable
  2. Inventory
  3. Goodwill
  4. Cost of Goods Sold (CGS) Expense
  5. SG&A Expense

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