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The information below is excerpted from the financial statements of two companies active in the retail industry. Use this information and the proper financial ratio(s)
The information below is excerpted from the financial statements of two companies active in the retail industry. Use this information and the proper financial ratio(s) to answer the following questions. Show your work. (in $ million) Company A Company B 107958 37296 Net revenues Net income 3526 1188 Accounts receivables 910 19908 Total current assets 18672 29564 Total assets 12708 15370 Total current liabilities Total liabuities Total stockholders' equity 26494 32433 14000 4500 Note: Approximately 98% of Company B's account receivables are from unpaid balances carried by customers using the store credit card. Which company is better positioned to pay its bills in the short-run (i.e., is more liquid and less risky in the short-term)? Justify using appropriate ratio(s)
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