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 I 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 7 Marketable securities 2 Accounts receivable, net 12 Inventories 16 Prepaid expenses lumann 5 0 15 20 15 48 37 Total current assets Property, plant, and equipment, net Goodwill Other assets Total assets 35 40 25 0 100 8 35 0 10 100 100 10 10 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable Short-term debet Accrued expenses Total current liabilities Long-term debt Other non-current liabilities Total liabilities Total shareholders' equity Total liabilities and shareholders' equity 10 25 0 35 45 0 80 20 100 10 15 3 28 28 lla la soluz 25 20 10 55 45 100 37 100