Company A has Sales of $1,000,000; COGS of $350,000; Cash of $100,000; Total Debt of...
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Company A has Sales of $1,000,000; COGS of $350,000; Cash of $100,000; Total Debt of $230,000; Total Assets of $3,500,000; Accounts Payable of $75,000; and Total Equity of $1,250,000. Company B has Sales of $100,000; COGS of $50,000; Cash of $20,000; Total Debt of $30,000; Total Assets of $500,000; Accounts Payable of $5,000; and Total Equity of $120,000. Company C has Sales of $700,000; COGS of $100,000; Cash of $25,000; Total Debt of $75,000; Total Assets of $1,000,000; Accounts Payable of $50,000; and Total Equity of $750,000. Using Common Size analysis, determine which firm is the most liquid. (Hint: Most refers to an appropriate Common Size Ratio and NOT to the raw dollar figure) Company C Company A Company B
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