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The following are simplified, vertical, common-size balance sheets for three firms: a retailer, a service firm, and a manufacturer. Assets Firm A Firm B Firm

The following are simplified, vertical, common-size balance sheets for three firms: a retailer, a service firm, and a manufacturer.

Assets

Firm A

Firm B

Firm C

Cash

6.1%

8.1%

8.7%

Receivables

23.2

4.4

12.1

Inventory

31.1

1.5

24.5

Total Current Assets

60.4

14.0

45.3

Plant, Property, and Equipment (net)

30.3

83.4

51.8

Investments

9.3

2.6

2.9

Total Assets

100.0%

100.0%

100.0%

Liabilities and Stockholders' Equity

Total Current Liabilities

29.3%

11.5%

21.6%

Long-Term Debt

18.1

24.8

37.8

Total Stockholders' Equity

52.6

63.7

40.6

Total Liabilities and Stockholders' Equity

100.0%

100.0%

100.0%

Required:

Identify the type of firm, explain your choice. and show your calculation.

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