Use the following information to answer the next two questions.
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|Company A||Company B||Company C|
|Cash and marketable securities||45%||7%||12%|
|Other current assets||0||16||5|
|Plant & equipment (net)||17||15||60|
|Liabilities and Net Worth|
|Other current liabilities||11||23||12|
|Total liabilities and net worth||100%||100%||100%|
|Selected Financial Data|
|Current assets/current liabilities||3.5||1.2||0.8|
|Cash, MS and ARs/current liabilities||3.3||0.8||0.6|
|Inventory turnover (X)||NA||2.9||87.3|
|Receivables collection period (days)||53.8||63.1||5.4|
|Total debt/total assets||0.189||0.457||0.413|
|Net profit/total assets||-0.007||0.02||0.117|
|Total assets/net worth||1.55||5.12||3.45|
|Net profit/net worth||-0.049||0.055||0.277|
1. The preceding table gives balance sheet percentages and selected financial data for three companies in very different industries – food and beverage, manufacturing, and social networking. Make three observations in each section – Assets, Liabilities and Net Worth, and Selected Financial Data – that you think are interesting. Describe what you think is going on.
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