Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Based on the image of financials and ratios, determine which company is in the following industries: Package Delivery Fast Food Restaurant Chain Utility Company Department

Based on the image of financials and ratios, determine which company is in the following industries:

  • Package Delivery
  • Fast Food Restaurant Chain
  • Utility Company
  • Department Store
  • Online Auction image text in transcribed
\begin{tabular}{|c|c|c|c|c|c|} \hline & Company A & Company B & Company C & Company D & Company E \\ \hline \multicolumn{6}{|l|}{ Common Size Balance Sheet: } \\ \hline Cash and marketable securities & 2% & 29% & 11% & 22% & 15% \\ \hline Accounts receivable & 3% & 1% & 2% & 31% & 15% \\ \hline Inventories & 3% & 1% & 26% & 0% & 1% \\ \hline Other current assets & 2% & 2% & 2% & 3% & 3% \\ \hline Plant \& equipment (net) & 65% & 48% & 37% & 7% & 55% \\ \hline Other assets & 26% & 19% & 23% & 37% & 11% \\ \hline Total assets & 100% & 100% & 100% & 100% & 100% \\ \hline Notes payable & 3% & 0% & 2% & 0% & 1% \\ \hline Accounts payable & 3% & 3% & 11% & 1% & 6% \\ \hline Accrued items & 1% & 5% & 4% & 6% & 11% \\ \hline Other current liabilities & 3% & 2% & 9% & 23% & 0% \\ \hline Long-term debt & 28% & 0% & 31% & 10% & 8% \\ \hline Other liabilities & 40% & 14% & 14% & 3% & 23% \\ \hline Preferred stock & 0% & 0% & 0% & 0% & 0% \\ \hline Common stock & 23% & 77% & 29% & 57% & 52% \\ \hline Total liabilities and net worth & 100% & 100% & 100% & 100% & 100% \\ \hline \multicolumn{6}{|l|}{ Select Ratios: } \\ \hline Current assets/Current liabilities & 0.97 & 3.34 & 1.52 & 1.84 & 1.96 \\ \hline (Cash, MS, and AR)/Current liabilities & 0.47 & 3.04 & 0.47 & 1.74 & 1.73 \\ \hline Inventory turnover & 3.55 & 154.28 & 3.01 & N/A & 72.25 \\ \hline Receivables collection period (days) & 37.56 & 3.14 & 5.72 & 294.51 & 41.57 \\ \hline Total debt/Total assets & 0.28 & 0.00 & 0.31 & 0.10 & 0.08 \\ \hline Long/term debt/Capitalization & 0.55 & 0.00 & 0.52 & 0.15 & 0.14 \\ \hline Revenue/Total assets & 0.26 & 1.60 & 1.29 & 0.39 & 1.32 \\ \hline Net profit/Revenue & 0.06 & 0.10 & 0.05 & 0.18 & 0.04 \\ \hline Net profit/Total assets & 0.02 & 0.16 & 0.07 & 0.07 & 0.05 \\ \hline Total assets/Net worth & 4.37 & 1.31 & 3.46 & 1.75 & 1.93 \\ \hline Net profit/Net worth & 0.07 & 0.21 & 0.24 & 0.12 & 0.09 \\ \hline EBIT/Interest expense & 2.67 & 308.09 & -7.08 & -33.71 & -40.00 \\ \hline EBITDA/Revenue & 0.26 & 0.20 & 0.10 & 0.21 & 0.07 \\ \hline \end{tabular}

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Managerial Accounting

Authors: Christine Jonick, Dahlonega, GA

1st Edition

1940771455, 9781940771458

More Books

Students also viewed these Accounting questions

Question

4. In Exercise 3, are the random variables X and Y independent?

Answered: 1 week ago