Take a look at Figure 30.1. Why do food stores hold large inventories? Why do railroads hold small inventories? Why do you think that pharmaceutical companies hold so much cash and securities? Answer briefly.

Figure 30.1

Transcribed Image Text:

80 70 60 50 40 30 20 Other 10 Receivables I Inventory I Cash and securities 0. Pharmaceuticals Computer eqpt. Semiconductors Comms egpt Clothing Software Machinery Motor vehicles Steel Clothing stores Food Chemicals Food stores Раper Airlines Oil Utilities Railroads Percent of total asse