Question
The information below is excerpited from the farancial statements of two companies active in the retail industry. Use this information and the proper fenanciol
The information below is excerpited from the farancial statements of two companies active in the retail industry. Use this information and the proper fenanciol rotiols to answer the following questions. (in $ million) Company A Company B Net revenues 107958 37296 Net income 3526 1188 Accounts receivables 910 19908 Total current assets 18672 29564 Total assets Total current liabilities 12708 15370 Total liabilities 26494 32433 Totals Iders' equity 14000 4500 Note: Appraximately 98% of Company B's account receivables are from unpaid balances carried by customers using the store credit card. Which company uses its assets better (Le, more efficiently)? Justify using appropriate ratio(s).
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Intermediate Accounting
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
1st edition
978-0133251579, 133251578, 013216230X, 978-0134102313, 134102312, 978-0132162302
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