Match the following companies with their corresponding balance sheets and financial ratios.6 In doing the exercise, consider the operating and competitive characteristics of the industry and their implications for (1) the collection period; (2) the inventory turnover; (3) the amount of plant and equipment; (4) the profit margins and profitability; and (5) the appropriate financing structure.

Then identify which one of the five sets of balance sheets and financial ratios best match your expectations.

a. Electric utility

b. Japanese automobile manufacturer

c. Discount general merchandise retailer

d. Automated test equipment / systems company

e. Upscale apparel retailer

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(Balance sheet percentages) A B C D E Cash 1.5 14.4 12.1 13.3 11 Receivables 4.6 3.8 30.9 39.8 11.8 Inventories 1.8 24.6 13.7 4.7 16.7 Other current assets 2 4.3 5 3.8 10 Property and equipment (net) 74.5 49.6 34.1 22.1 20.3 Other assets 15.6 3.4 4.3 16.3 30.2 Total assets 100.0 100.0 100.0 100.0 100.0 Notes payable 5.3 0.4 5.4 18.2 1.4 Accounts payable 2.1 24.8 11 8.3 8.8 Other current liabilities 5.9 17 14.2 8.7 16.5 Long-term debt 33.6 10 34.3 23.1 21.7 Other liabilities 26.3 2.2 11.2 5.6 2 Owners' equity 26.8 45.6 23.9 36.1 49.6 Total 100.0 100.0 100.0 100.0 100.0