Below are balance sheets for two firms with similar revenues. Amounts are in millions of dollars. Which firm looks more risky for shareholders?Why?

Transcribed Image Text:

FIRM A Liabilities and Equity Accounts payable Long-term debt Assets Cash Accounts raceivable Enventory Propery, plant, and equipment Long-term debt investments S 17 43 102 194 104 460 200 Common equity 460 FIRM B Liabilities and Equity Assets Cash Akcounts receivabie Accounts payable Long term debt 37 200 72 107 289 483 Property, plant, and equipment Common equity $483