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