Problem -
The following are simplified, vertical, common - size balance sheets for three firms - a retailer, a service firm, and a manufacturer.
|
Assets
|
Firm A
|
Firm B
|
Firm C
|
|
Cash
|
6.10%
|
8.10%
|
8.70%
|
|
Receivables
|
23.2
|
4.4
|
12.1
|
|
Inventory
|
31.1
|
1.5
|
24.5
|
|
Total Current Assets
|
60.4
|
14
|
45.3
|
|
Plant, Property, and Equipment (net)
|
30.3
|
83.4
|
51.8
|
|
Investments
|
9.3
|
2.6
|
2.9
|
|
Total Assets
|
100.00%
|
100.00%
|
100.00%
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
Total Current Liabilities
|
29.30%
|
11.50%
|
21.60%
|
|
Long -Term Debt
|
18.1
|
24.8
|
37.8
|
|
Total Stockholders' Equity
|
52.6
|
63.7
|
40.6
|
|
Total Liabilities and Stockholders' Equity
|
100.00%
|
100.00%
|
100.00%
|
Required: Match the statements to the type of firm and explain your choice.