Common-sized financial statements and selected ratios of 10 companies, along with an explanation of key items, are presented in the following pages. The companies were chosen because they consist of primarily one major business segment and the relationships between balance sheet items, profit, and operations are fairly typical of these industries. To facilitate accounting comparisons, the companies are all headquartered in the United States. The financial statements are the latest annual financials for the respective fiscal years ending in 1999 or 2000. The companies involved are: Developer of prepackaged software On-line retailer ouse club for food and general merchandise War Major passenger airline International hotel chain Temporary staffing agency Supermarket grocery retailer Pharmaceutical company Manufacturer of electronic communications equipment Manufacturer and marketer of consumer products Use the ratios, common-sized statements, and your knowledge of business operations and ons a data were generated to identify the companies. thes 201-039 -3- Common-Sized Financial Statements Exhibit 1 J Median H E G E C D A ASSETS Cash & Marketable Securities Receivables 5 8 % 58.3 % 62.0 % 98% 7.8% 28.6 % 10.8 % 13.7 % 92 % 10.5 % 1.6 % 3.5 % 21.9 % 5.6 % 4 8 % 41 6 % 1 1% 4.3 % 1.0 % 1.9% 8.2 % 44 4 % 14.1% 25.1 % 82 % 91.8% 100.0 % 6.9% 8.7% 92% 10.4% 9.0 % 7.0 % 11.5% 3.6% 8.5% 4 7% 8.0 % 3.1 % 31 6 % 27 2 % 13 4 % 21.3 % 6 6 % 8.9% Inventories Other Current Assets Total Current Assets Net Plant & Equipment 5.7 % 7.1 % 71 2 % 35 % 2.0% 54.1 % 44 8 % 3.8% 56% 16.2 % 693 % 5.0% 7.1% 38 2% 33.2% 77.5% 35 4 % 44.2 % 41.0% 12.9 % 30 8% 46 1% 8.6% 24 8% 18 1% 39 3% 15.0% Investments 20.9 % 6.6 % 13.8 % Goodwill & Intangibles Other Noncurent Asse1s 29.5% 16 % 5.4 % 4.2 % 21 2 % 13.9 % 2.2% 1.1% 45.9% 4.1% 4.1% 41% 64.6% 100.0 % 31 0% 61.8 % Total Noncurrent Assets. Total Assets 83.8% 1000 % 59.0% 100.0 % 69.2% 100.0% 68.4% 100 0 % 28.8% 100 0% 22.5% 100.0 % 100.0 % 100.0 % LIABLITIES AND EQUITY 18 7 % 16.0 % Accounts P ayable Short-tem Debt Current Portion of LIT Debt Unearned Revenues Other Current Liabiltie s Total Curent Lisbilities Total Long-Tem Debt Other Noncument Liabilities Total Liabiities Preferred Stock Common Stock Total Stockholders Equity Total Liabilities & Equity 6.6 % 9.9 % 13.0% 7 2% 11 7% 8.0% 8.1% 26.9% 7.1% 4.6% 4.4 % 9.8% 67% 0.6% 22% 84 % 3.0% 0 1% 4.2% 11.0 % 0.0 % 0.0% 2.0 % 4 9 % 12.9% 31.9% 44 8% 84 % 85 1 % 0.15% 6 8% 65 8 % 12 1% 32.0 % 43.7 % 40% 322% 11.8% 279% 16.5% 33.5 % 19.4% 9.5 % 185% 14 8% 26.9% 13.9% 29.9% 59.3 % 41.7 % 24 6% 8.8% 29 4% 33.3 % 8.3 % 13.4 % 33 3 % 32 7% 10.3% 9.0 % 62.6% 0.2 % 4.4% 3.0% 89 2 % 84.7% 71.9% 12% 26.9 % 62.5% 5.5% 62 8% 46.2 % 43.7 % 54.9 % 13 % 43.8 % 45.1% 100.0% 36.3% 10.8 % 10.8 % 14 9% 14.9% 100.0 % 15.3% 32 0% 37.5% 100 0% 37 2% 37 2% 100 0% 56 3 % 56.3 % 100.0% 63.7 % 53 8% 34.6 % 37 4 % 15.3% 100.0 % 28.1% 100.0% 53 8 % 63.7% 100.0 % 100.0% 100 0 % SELECTED RATIOS Gross Margin R&DS ales Net Income/Sales 38.3 % 17.7% 9.7 % (43.9 % ) 26 5 % 43 2% 44 4 % 46 4 % 6.5% 18 1% 38.0 % 11.1% 2.6% 11.4 % 17.9 % 90.7% 19.8% 234 % 38.2% 1 4 % 8.1% 7.4% 9.9% 2.0 % 2 6% 5.0% Days of Receivables Inventory Tumover Fixed Asset Turnover Total Asset Tumover 5 8.5 5.481 2524 N/M N/M 0.523 0 232 15 28 64 3.020 1 187 46 60 5 6 3.345 0.829 5 52 28 28 6.1 62 8.3 5.163 0.663 6.1 4 272 1.053 1.283 0.889 3.381 8.740 22 829 14 687 1.263 0918 3.918 4.130 Net Income/Assets Net Income/Equity (0.291) (2.704) 0.035 0.019 0.123 0.086 0.117 0360 0 166 0.447 0.022 0.050 0.104 0.082 0.146 0.296 0.464 0234 0.074 0213 0.245 0.192 Assets/Equity Debt/Equity LIT DebtTotal Capital 9 282 5.561 0.846 6.696 3.198 0.750 6.539 4.307 0.811 3.719 0.596 0.29 3.125 2.691 2 284 1.859 1.775 0.081 1.569 2.908 0.913 0.453 0.192 0.342 0.155 0.004 0.004 0.525 0.341 0.244 Note Category not eported separately on financial statements. "NM-Category not meaningful robat Reader DC (H) OF-ENG pdf x 75% 3 /3 201-032 Eshibit 1 Common Sized Financial Statements Median C D ASSETS Cash & Masasable Secuntes Receivables 5.8 % 78% 10.8 % 56% 48% 620 % 9.0% 1 1% 43% 87% 28 6% 16% 35% 21 9% 38% 30 8% 4 1% 69% 36% 8 % z0% 58 3% 137% 85% 47% 38 2 % 33 2 % 41 6% inveories Oher Current Asses 89% 35% 41.0 % 12 9% s0 4% 1% 10% 57% 10 5% 50% 16 2% 31% 31 6% 27 2% 13 4% 1.9% 775% 54 1% 44 % 35 4% 39 3% 44 2% 24 % 82% 44 4% 14 1% Net Plant& E 18 1% 86% 69 3% 50% 54% 42% Invesments Godw&intangees Omer Noncument Assets Tetal Noncurent Assets. Tetal Assets 28 % 21 2 % 6 0% 4 1% 28.8% 13 8% 20.9% 22% 25.1% 21 3% 13 9% 22 5% 16% 31.0% 5543% 100 0% 1.1% 45.9% 100 0% 41% 410 04.0% 100 0% 6 6% 91 8% 100 0% 61 8% d9.25 100 0 % g4.43% 100 0% 100 0% 100 0% 100 0% 100 0% LIABLITIES AND EQUITY Accounts Payable stem Deb 16 0% 18.7% 13.0% 7 2% 98% 11.7% 8.0% 81% 26 9% 7.1% 4% 99% 4.0 % 67% Uneaed B IT Deb Oner Curent Lusbses Total CamentLisbes Tewl Lang-Tem Deb Other Noncument Lisbies 42 % 30 % 0.0 % 0.0% 2 2% 11.0% 20% 20 9% 12 9 % 0.1% 68% 40% 32 2 % .5% 33 5% 9% 18 5% 33 3% 83% 14 4% 32 0% 43 7% 139% 32 7% 10 3% 29 9% 59 3% 24 0% 417% 33 3% 4% 0.2% 12 1% 84 % 29 4% 134% 44% 30% 34 3% n1% 84 % 62 % 54 93%- 2% 43 7% 62 6% Paferred Soora Common 5t0ck Tatal Stocahoer Eguty Total Liabiteies & Equity 12% 26.9% 28.13 14 9 % 15 2 % 438% 32 0 % 37 2 az25 100 0% 5e 3% 25% so o%- 617% 03.7% 100 0% 34 6% 45.1% 100 0% 37 4% 100 no 100 0% 100 0% 100 0% 100 0% 00 0% SELECTED RATIOS Gress Margi Ssies 17 7% 205% 43 2% 38 3 % 44 4% 46 4% 38 0% 11 4% 17 9% 907% 19 a% 234 % 38 2% 975% 11.1% tomeisales Days of Receivables Tum Tewl Asser Tuman (43 9% 1 4% 15% 74% 9 9% 18 1% 24% 2 6% 20% 50% 15 40 52 28 20 64 5481 2 524 s163 s23 0 232 1203 3389 0958 3 345 0429 8740 3918 22 829 4130 4272 1053 4.6E7 Netincemease Nat innemeoty i 291x 2 704) 0.035 0234 0066 0 245 020 0 104 0192 0.082 0140 0290 0 464 a 074 0213 9.123 0 447 Asset uty DetcEute UT DebrTacCap 9282 s61 379 125 261 2 28e 1859 1.778 4 301 1 569 2908 0.525 244 o 081 0342 0.004 g.004 g411 0296 0 341 192 0 155 e Common-sized financial statements and selected ratios of 10 companies, along with an explanation of key items, are presented in the following pages. The companies were chosen because they consist of primarily one major business segment and the relationships between balance sheet items, profit, and operations are fairly typical of these industries. To facilitate accounting comparisons, the companies are all headquartered in the United States. The financial statements are the latest annual financials for the respective fiscal years ending in 1999 or 2000. The companies involved are: Developer of prepackaged software On-line retailer ouse club for food and general merchandise War Major passenger airline International hotel chain Temporary staffing agency Supermarket grocery retailer Pharmaceutical company Manufacturer of electronic communications equipment Manufacturer and marketer of consumer products Use the ratios, common-sized statements, and your knowledge of business operations and ons a data were generated to identify the companies. thes 201-039 -3- Common-Sized Financial Statements Exhibit 1 J Median H E G E C D A ASSETS Cash & Marketable Securities Receivables 5 8 % 58.3 % 62.0 % 98% 7.8% 28.6 % 10.8 % 13.7 % 92 % 10.5 % 1.6 % 3.5 % 21.9 % 5.6 % 4 8 % 41 6 % 1 1% 4.3 % 1.0 % 1.9% 8.2 % 44 4 % 14.1% 25.1 % 82 % 91.8% 100.0 % 6.9% 8.7% 92% 10.4% 9.0 % 7.0 % 11.5% 3.6% 8.5% 4 7% 8.0 % 3.1 % 31 6 % 27 2 % 13 4 % 21.3 % 6 6 % 8.9% Inventories Other Current Assets Total Current Assets Net Plant & Equipment 5.7 % 7.1 % 71 2 % 35 % 2.0% 54.1 % 44 8 % 3.8% 56% 16.2 % 693 % 5.0% 7.1% 38 2% 33.2% 77.5% 35 4 % 44.2 % 41.0% 12.9 % 30 8% 46 1% 8.6% 24 8% 18 1% 39 3% 15.0% Investments 20.9 % 6.6 % 13.8 % Goodwill & Intangibles Other Noncurent Asse1s 29.5% 16 % 5.4 % 4.2 % 21 2 % 13.9 % 2.2% 1.1% 45.9% 4.1% 4.1% 41% 64.6% 100.0 % 31 0% 61.8 % Total Noncurrent Assets. Total Assets 83.8% 1000 % 59.0% 100.0 % 69.2% 100.0% 68.4% 100 0 % 28.8% 100 0% 22.5% 100.0 % 100.0 % 100.0 % LIABLITIES AND EQUITY 18 7 % 16.0 % Accounts P ayable Short-tem Debt Current Portion of LIT Debt Unearned Revenues Other Current Liabiltie s Total Curent Lisbilities Total Long-Tem Debt Other Noncument Liabilities Total Liabiities Preferred Stock Common Stock Total Stockholders Equity Total Liabilities & Equity 6.6 % 9.9 % 13.0% 7 2% 11 7% 8.0% 8.1% 26.9% 7.1% 4.6% 4.4 % 9.8% 67% 0.6% 22% 84 % 3.0% 0 1% 4.2% 11.0 % 0.0 % 0.0% 2.0 % 4 9 % 12.9% 31.9% 44 8% 84 % 85 1 % 0.15% 6 8% 65 8 % 12 1% 32.0 % 43.7 % 40% 322% 11.8% 279% 16.5% 33.5 % 19.4% 9.5 % 185% 14 8% 26.9% 13.9% 29.9% 59.3 % 41.7 % 24 6% 8.8% 29 4% 33.3 % 8.3 % 13.4 % 33 3 % 32 7% 10.3% 9.0 % 62.6% 0.2 % 4.4% 3.0% 89 2 % 84.7% 71.9% 12% 26.9 % 62.5% 5.5% 62 8% 46.2 % 43.7 % 54.9 % 13 % 43.8 % 45.1% 100.0% 36.3% 10.8 % 10.8 % 14 9% 14.9% 100.0 % 15.3% 32 0% 37.5% 100 0% 37 2% 37 2% 100 0% 56 3 % 56.3 % 100.0% 63.7 % 53 8% 34.6 % 37 4 % 15.3% 100.0 % 28.1% 100.0% 53 8 % 63.7% 100.0 % 100.0% 100 0 % SELECTED RATIOS Gross Margin R&DS ales Net Income/Sales 38.3 % 17.7% 9.7 % (43.9 % ) 26 5 % 43 2% 44 4 % 46 4 % 6.5% 18 1% 38.0 % 11.1% 2.6% 11.4 % 17.9 % 90.7% 19.8% 234 % 38.2% 1 4 % 8.1% 7.4% 9.9% 2.0 % 2 6% 5.0% Days of Receivables Inventory Tumover Fixed Asset Turnover Total Asset Tumover 5 8.5 5.481 2524 N/M N/M 0.523 0 232 15 28 64 3.020 1 187 46 60 5 6 3.345 0.829 5 52 28 28 6.1 62 8.3 5.163 0.663 6.1 4 272 1.053 1.283 0.889 3.381 8.740 22 829 14 687 1.263 0918 3.918 4.130 Net Income/Assets Net Income/Equity (0.291) (2.704) 0.035 0.019 0.123 0.086 0.117 0360 0 166 0.447 0.022 0.050 0.104 0.082 0.146 0.296 0.464 0234 0.074 0213 0.245 0.192 Assets/Equity Debt/Equity LIT DebtTotal Capital 9 282 5.561 0.846 6.696 3.198 0.750 6.539 4.307 0.811 3.719 0.596 0.29 3.125 2.691 2 284 1.859 1.775 0.081 1.569 2.908 0.913 0.453 0.192 0.342 0.155 0.004 0.004 0.525 0.341 0.244 Note Category not eported separately on financial statements. "NM-Category not meaningful robat Reader DC (H) OF-ENG pdf x 75% 3 /3 201-032 Eshibit 1 Common Sized Financial Statements Median C D ASSETS Cash & Masasable Secuntes Receivables 5.8 % 78% 10.8 % 56% 48% 620 % 9.0% 1 1% 43% 87% 28 6% 16% 35% 21 9% 38% 30 8% 4 1% 69% 36% 8 % z0% 58 3% 137% 85% 47% 38 2 % 33 2 % 41 6% inveories Oher Current Asses 89% 35% 41.0 % 12 9% s0 4% 1% 10% 57% 10 5% 50% 16 2% 31% 31 6% 27 2% 13 4% 1.9% 775% 54 1% 44 % 35 4% 39 3% 44 2% 24 % 82% 44 4% 14 1% Net Plant& E 18 1% 86% 69 3% 50% 54% 42% Invesments Godw&intangees Omer Noncument Assets Tetal Noncurent Assets. Tetal Assets 28 % 21 2 % 6 0% 4 1% 28.8% 13 8% 20.9% 22% 25.1% 21 3% 13 9% 22 5% 16% 31.0% 5543% 100 0% 1.1% 45.9% 100 0% 41% 410 04.0% 100 0% 6 6% 91 8% 100 0% 61 8% d9.25 100 0 % g4.43% 100 0% 100 0% 100 0% 100 0% 100 0% LIABLITIES AND EQUITY Accounts Payable stem Deb 16 0% 18.7% 13.0% 7 2% 98% 11.7% 8.0% 81% 26 9% 7.1% 4% 99% 4.0 % 67% Uneaed B IT Deb Oner Curent Lusbses Total CamentLisbes Tewl Lang-Tem Deb Other Noncument Lisbies 42 % 30 % 0.0 % 0.0% 2 2% 11.0% 20% 20 9% 12 9 % 0.1% 68% 40% 32 2 % .5% 33 5% 9% 18 5% 33 3% 83% 14 4% 32 0% 43 7% 139% 32 7% 10 3% 29 9% 59 3% 24 0% 417% 33 3% 4% 0.2% 12 1% 84 % 29 4% 134% 44% 30% 34 3% n1% 84 % 62 % 54 93%- 2% 43 7% 62 6% Paferred Soora Common 5t0ck Tatal Stocahoer Eguty Total Liabiteies & Equity 12% 26.9% 28.13 14 9 % 15 2 % 438% 32 0 % 37 2 az25 100 0% 5e 3% 25% so o%- 617% 03.7% 100 0% 34 6% 45.1% 100 0% 37 4% 100 no 100 0% 100 0% 100 0% 100 0% 00 0% SELECTED RATIOS Gress Margi Ssies 17 7% 205% 43 2% 38 3 % 44 4% 46 4% 38 0% 11 4% 17 9% 907% 19 a% 234 % 38 2% 975% 11.1% tomeisales Days of Receivables Tum Tewl Asser Tuman (43 9% 1 4% 15% 74% 9 9% 18 1% 24% 2 6% 20% 50% 15 40 52 28 20 64 5481 2 524 s163 s23 0 232 1203 3389 0958 3 345 0429 8740 3918 22 829 4130 4272 1053 4.6E7 Netincemease Nat innemeoty i 291x 2 704) 0.035 0234 0066 0 245 020 0 104 0192 0.082 0140 0290 0 464 a 074 0213 9.123 0 447 Asset uty DetcEute UT DebrTacCap 9282 s61 379 125 261 2 28e 1859 1.778 4 301 1 569 2908 0.525 244 o 081 0342 0.004 g.004 g411 0296 0 341 192 0 155 e
