The following is a selected list of ratios comparing Long Inc. and Circular Corporation for a recent year:

Instructions
(a) Classify each of the above ratios as a liquidity (L), solvency (S), or profitability (P) ratio.
(b) For each of the above ratios, indicate whether Long's ratio is better (B) or worse (W) than that reported by Circular.
(c) Identify whether the comparison done in (b) is an intra company comparison or an intercompany comparison?

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Longi (a)(b) Acid-test Asset turnover Current ratio Debt to total assets Gross profit margin Interest coverage Inventory turnover Operating cycle Profit margin Receivables turnover Return on assets Return on equity .7 times 1.3:1 30.1% 38.7% 5.6 times 5.8 times 119 days 10.4% 6.5 times 17.2% 24.8% Circular 0.8:1 1.6 times 1.6:1 40.6% 38.6% 2.3 times 5.1 times 134 days 8.5% 5.9 times 13.7% 28.2%