QUESTION 1: Using the information below: comment on the financial strength/weakness of Company A and B. Utilize ratios to back up your response. (10 marks) EXHIBIT 1 Common-Size Balance Sheets for Company A, Company B, and Sector Average Sector Company A Company B Average ASSETS Current assets Cash and cash equivalents Marketable securities Accounts receivable, net Inventories Prepaid expenses 50502 nnnny 2 15 12 15 16. 15 11 Total current assets 35 55 48 Property, plant, and equipment, net 40 35 37 Goodwill 25 0 8 Other assets Total assets 0 10 100 100 100 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable Short-term debt Accrued expenses Total current liabilities Long-term debt Other non-current liabilities Total liabilities Total shareholden' equity Total liabilities and shareholders' equity 15 3 28 20 28 80 55 63 201 45 100 100 100