Which of the following two companies' long-term debt (highlighted) is riskier? Assets Cash A/R Inventories Other current assets Net PPE Other assets Total Assets O Company B O Company A A Liabilities & Equity Notes payable Accounts Payable Accrued items 5 Other current liabilities 6 Long-term debt 29 Other liabilities 38 Preferred stock 0 Shareholders' equity 12 Total liabilities and equity 100 20 16 0 4 46 14 100 5 6 B 5 4 21 2 60 7 100 11 18 4 11 25 13 O 17 100

Which of the following two companies' long-term debt (highlighted) is riskier? Assets A B Cash A/R Inventories Other current assets Net PPE Other assets Total Assets 20 5 16 4 0 21 2 4 60 14 7 100 100 Liabilities \& Equity NotespayableAccountsPayableAccrueditemsOthercurrentliabilitiesLong-termdebtOtherliabilitiesPreferredstockShareholdersequityTotalliabilitiesandequity5656293801210011184112513017100 Company B Company A