Question: For this question, use the formula sheet where there are simplified balance sheets and income statements for three firms. Which firm has highest bargaining power

 For this question, use the formula sheet where there are simplified

For this question, use the formula sheet where there are simplified balance sheets and income statements for three firms. Which firm has highest bargaining power against buyers who buy products and either pay in cash or issue accounts payable? Financial Ratios> Liquidity Ratio Current Ratio = Current Asset / Current Liability Quick Ratio = (Current Asset - Inventory) / Current Liability Leverage Ratio Debt-to-asset = Total Liability / Total Asset Debt-to-equity = Total Liability / Shareholders' Equity Activity Ratio Inventory Turnover = Sales / Inventory AR Turnover = Sales / Account Receivable a. Competitor B b. Your firm c. Competitor A

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