Question
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% |
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Liabilities and Stockholders' Equity |
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Total Current Liabilities | 29.3% | 11.5% | 21.6% |
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Long-Term Debt | 18.1 | 24.8 | 37.8 |
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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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