1. An analyst gathered the following information about a company and the company's industry:

After preparing common-size balance sheets for the company and the industry, the analyst noted that the company and the industry both have the same proportion of current liabilities, long-term liabilities, and shareholders' equity. Would the common-size balance sheets for the company or the industry most likely have a higher percentage associated with inventory and accounts receivable, respectively?
Higher percentage　　　　　Higher percentage associated
associated with inventory　　　with accounts receivable