Use the ratios below to answer the following questions. You must support and be sure to consider all relevant ratios.

	A	B	B
Profit Margin (%)	10.2%	14.4%	20.2%
Gross Margin (%)	36.6%	14.3%	24.4%
Operating Profit Margin (%)	15.6%	2.3%	21.8%
Asset Turnover (x)	2.8	2.3	2.4
Inventory Turnover (x)	9.0	12.8	15.4
Days' sales in cash (days)	5.2	8.2	13.9
Collection Period (days)	28.6	43.2	31.5
Times interest earned (x)	10.1	4.7	9.7
Current Ratio (%)	2.8	0.5	0.4
Cash Flow Margin	8.6%	-2.5%	10.2%
Financing Cash flow	(44,000)	65,000	(20,000)
Investing Cash flow	(35,500)	(21,000)	32,000

a) Which company is least liquid? Support your answer

b) Which company has the lowest A/R turnover? What is it?

c) Which company the most efficient at generating net income with its assets? What is its ROA?

d) Which company has the highest operating expenses as a percentage of sales? What is it?

e) Which company is using money from operations to purchase plant and equipment?