Airline

Bookstore chain

Commercial Bank (fitted into the most nearly comparable balance sheet and ratio categories of the nonfinancial companies)

Computer software developer

Department store chain (with its "own brand" charge card)

Electric and gas utility (with 80% of its revenue from electricity sales and 20% of its revenue from natural gas sales)

Online direct factory to customer personal computer vendor (with more than half of sales to business customers and most manufacturing outsourced)

Online retailer

Parcel delivery service

Pharmaceutical manufacturer

Restaurant chain

Retail drug chain

Retail grocery chain

Social networking service

Try matching the 14 industries named above with the financial data in Exhibit 1. In one sentence for each, explain why.

214-628 -3- Exhibit1 Balance Sheet Percentages and Selected Financial Data for Unidentified Industries Line Balance Sheet Percentages A D E F G H 1 K L M N 3 4 6 21 1. 2 3. 4 5 6. 7. Cash and marketable securities Accounts receivable Inventories Other current assets Plant & equipment (net) Other assets Total assets a 35 10 19 1 22 13 100 4 4 38 9 16 29 100 27 21 3 8 4 37 100 25 7 4 5 8 52 100 20 16 0 4 46 14 100 54 12 1 4 7 22 100 64 5 0 6 16 10 100 5 4 21 2 60 7 100 3 6 47 32 100 16 26 17 4 32 5 100 1 2 2 3 2 60 31 100 16 2 0 5 69 9 7 83 0 0 0 10 100 36 32 100 100 1 4 2 1 8. Notes payable 9. Accounts payable 10. Accrued items 11. Other current liabilities 12. Long-term debt 13. Other liabilities 14. Preferred stock 15. Common stock 16. Total liabilities and net worth 0 41 17 0 9 7 0 25 100 0 22 15 9 2 17 15 19 100 8 24 8 9 11 17 0 23 100 3 2 1 9 17 24 0 44 100 5 6 5 6 29 38 0 2 3 3 18 9 9 0 55 100 0 2 3 2 10 5 0 78 100 0 8 9 7 33 18 0 11 18 4 11 25 13 0 17 100 0 12 5 10 39 10 0 24 100 4 13 5 4 12 7 0 54 100 2 32 23 0 36 100 6 6 12 16 22 0 38 100 50 21 0 3 13 4 0 10 100 12 25 100 100 Selected Financial Data 17. Current assets/current liabilities 18. Cash, MS, and ARs/current liabilities 19. Inventory turnover (X) 20. Receivables collection period (days) 21. Total debtotal assets 22. Long-term debt/capitalization 23 Revenue/total assets 24 Net profit/revenue Net profit/total assets 25. Total assetset worth 27. Net profitet worth 28. EBITAnterest expense 29. EBITDA revenue 1.12 1.19 0.78 0.18 7.6 3.7 20 8 0.09 0.02 0.27 0.06 1.877 1.832 -0.001 -0.023 -0.001 -0.042 3.97 2.90 -0.005 -0.122 7.35 6.21 0.05 0.00 1.19 0.97 32.4 63 0.19 0.33 1.198 0.042 2.64 2.07 1.6 77 0.20 0.28 0.317 0.247 0.078 2.27 0.178 12.26 0.45 1.86 1.67 NA 41 0.33 0.70 1.393 0.015 0.021 8.21 0.171 3.42 0.06 2.71 2.53 10.4 82 0.11 0.14 0.547 0.281 0.153 1.80 0.277 63.06 0.40 10.71 9.83 NA 52 0.10 0.11 0.337 0.010 0.004 1.28 0.005 10.55 0.23 0.87 0.49 31.5 8 0.33 0.57 1.513 0.117 0.177 4.00 0.709 13.57 0.22 0.72 2.28 0.20 1.53 14.9 5.5 4 64 0.36 0.39 0.59 0.62 3.925 1.502 0.015 0.061 0.051 0.091 4.23 0.355 0.384 5.98 8.05 0.05 0.15 1.23 0.40 7.3 11 0.16 0.18 2.141 0.030 0.064 1.83 0.117 35.71 0.08 1.01 0.45 2.3 51 0.36 0.47 0.172 0.090 0.016 2.77 0.043 2.52 0.28 0.91 0.71 NA 7 0.17 0.29 0.919 0.025 0.023 2.66 0.060 4.24 0.09 1.36 1.23 NA 8047 0.63 0.56 0.038 0.107 0.004 9.76 0.039 NA 0.15 25. 0.050 5.85 4.44 0.222 11.16 0.07 Source: Compiled from company annual reports NA-Not applicable *Column totals may not add to 100 due to rounding. 214-628 -3- Exhibit1 Balance Sheet Percentages and Selected Financial Data for Unidentified Industries Line Balance Sheet Percentages A D E F G H 1 K L M N 3 4 6 21 1. 2 3. 4 5 6. 7. Cash and marketable securities Accounts receivable Inventories Other current assets Plant & equipment (net) Other assets Total assets a 35 10 19 1 22 13 100 4 4 38 9 16 29 100 27 21 3 8 4 37 100 25 7 4 5 8 52 100 20 16 0 4 46 14 100 54 12 1 4 7 22 100 64 5 0 6 16 10 100 5 4 21 2 60 7 100 3 6 47 32 100 16 26 17 4 32 5 100 1 2 2 3 2 60 31 100 16 2 0 5 69 9 7 83 0 0 0 10 100 36 32 100 100 1 4 2 1 8. Notes payable 9. Accounts payable 10. Accrued items 11. Other current liabilities 12. Long-term debt 13. Other liabilities 14. Preferred stock 15. Common stock 16. Total liabilities and net worth 0 41 17 0 9 7 0 25 100 0 22 15 9 2 17 15 19 100 8 24 8 9 11 17 0 23 100 3 2 1 9 17 24 0 44 100 5 6 5 6 29 38 0 2 3 3 18 9 9 0 55 100 0 2 3 2 10 5 0 78 100 0 8 9 7 33 18 0 11 18 4 11 25 13 0 17 100 0 12 5 10 39 10 0 24 100 4 13 5 4 12 7 0 54 100 2 32 23 0 36 100 6 6 12 16 22 0 38 100 50 21 0 3 13 4 0 10 100 12 25 100 100 Selected Financial Data 17. Current assets/current liabilities 18. Cash, MS, and ARs/current liabilities 19. Inventory turnover (X) 20. Receivables collection period (days) 21. Total debtotal assets 22. Long-term debt/capitalization 23 Revenue/total assets 24 Net profit/revenue Net profit/total assets 25. Total assetset worth 27. Net profitet worth 28. EBITAnterest expense 29. EBITDA revenue 1.12 1.19 0.78 0.18 7.6 3.7 20 8 0.09 0.02 0.27 0.06 1.877 1.832 -0.001 -0.023 -0.001 -0.042 3.97 2.90 -0.005 -0.122 7.35 6.21 0.05 0.00 1.19 0.97 32.4 63 0.19 0.33 1.198 0.042 2.64 2.07 1.6 77 0.20 0.28 0.317 0.247 0.078 2.27 0.178 12.26 0.45 1.86 1.67 NA 41 0.33 0.70 1.393 0.015 0.021 8.21 0.171 3.42 0.06 2.71 2.53 10.4 82 0.11 0.14 0.547 0.281 0.153 1.80 0.277 63.06 0.40 10.71 9.83 NA 52 0.10 0.11 0.337 0.010 0.004 1.28 0.005 10.55 0.23 0.87 0.49 31.5 8 0.33 0.57 1.513 0.117 0.177 4.00 0.709 13.57 0.22 0.72 2.28 0.20 1.53 14.9 5.5 4 64 0.36 0.39 0.59 0.62 3.925 1.502 0.015 0.061 0.051 0.091 4.23 0.355 0.384 5.98 8.05 0.05 0.15 1.23 0.40 7.3 11 0.16 0.18 2.141 0.030 0.064 1.83 0.117 35.71 0.08 1.01 0.45 2.3 51 0.36 0.47 0.172 0.090 0.016 2.77 0.043 2.52 0.28 0.91 0.71 NA 7 0.17 0.29 0.919 0.025 0.023 2.66 0.060 4.24 0.09 1.36 1.23 NA 8047 0.63 0.56 0.038 0.107 0.004 9.76 0.039 NA 0.15 25. 0.050 5.85 4.44 0.222 11.16 0.07 Source: Compiled from company annual reports NA-Not applicable *Column totals may not add to 100 due to rounding