Selected financial data for the current year for two competitive companies are as follows:

			BB Co. ($ 000s)				KK Co. ($ 000s)
	Statement of income data:
	Net sales			3,800				6,800
	Cost of goods sold			2,900				5,700
	Selling and admin expenses			440				400
	Interest expense			130				170
	Other expenses			20				0
	Income taxes			110				130
	Net income			200				400
	Statement of financial position data:
	End-of-year balances:
	Current assets			1,000				1,600
	Property, plant, and equipment (net)			1,880				2,900
	Other assets			720				1,000
	Total assets			3,600				5,500
	Current liabilities			550				800
	Long-term debt			2,220				3,100
	Total shareholders' equity			830				1,600
	Total liabilities and shareholders' equity			3,600				5,500
	Beginning-of-year balances:
	Total assets			$3,200				$5,100
	Total shareholders' equity			750				1,250
	Other data:
	Average net accounts receivables			350				700
	Average inventory			300				500

(b) List 2 strengths and 2 weaknesses for each company.

					BB		KK
	i.		Average collection period (in days) for receivables		33.6		37.6
	ii.		Average holding period (in days) for inventory		37.7		32.0
	iii.		Current ratio (CR)		1.82		2.00
	iv.		Net debt as a percentage of total capitalization		0.73		0.66
	v.		Interest coverage		3.4		4.1
	vi.		Return on assets (ROA)		5.9	%	7.5	%
	vii.		Return on equity (ROE)		25.3	%	28.1	%
	viii.		Net profit margin		5.3	%	5.9	%