Directions

Match each company?s data set (Exhibit 1, pp. 2 and 3) with the industry (Exhibit 2, p. 4) in

which that company operates. Be sure to keep track of the rationale you employ in forming each

match.

Then, post two comments on assignment findings

FIU ACG 6175 Financial Reporting and Analysis Week 4Identify the Industries Overview While companies may differ in their strategic objectives, financing mixes, and management approaches, they, nevertheless, share common characteristics with other firms in their industry. These characteristics result from the operational realities of a company's industry, and as such can be used as benchmarks in evaluating a company's financial position. The attached exhibits contain selected balance sheet data, financial ratios, and a list of industry groups for 14 companies. The financial data were gathered from the companies' 1998 10-K filings as reported by Compustat. Directions Match each company's data set (Exhibit 1, pp. 2 and 3) with the industry (Exhibit 2, p. 4) in which that company operates. Be sure to keep track of the rationale you employ in forming each match. 2010 Florida International University Page 1 of 4 FIU ACG 6175 Financial Reporting and Analysis Exhibit 1 Selected Balance Sheet and Financial Ratio Information* Company Number 1 2 Assets % % Cash 0.05 0.18 Receivables 0.11 0.09 Inventory 0.00 0.07 PP&E Net 0.01 0.49 Intangibles 0.00 0.02 Investments 0.67 0.02 Other Assets 0.16 0.12 Total Assets 100% 100% Debt - Current Portion 0.00 0.00 Notes Payable 0.00 0.00 Accounts Payable 0.01 0.09 Taxes Payable 0.00 0.01 Other Current Liabilities 0.00 0.14 Total Long Term Debt 0.02 0.07 Deferred Taxes 0.01 0.05 Minority Interests 0.00 0.00 Other Liabilities 0.76 0.09 Total Liabilities 80% 46% Preferred Stock - Total 0.00 0.00 Common Equity 0.20 0.54 Total Stockholders' Equity 20% 54% Selected Financial Ratios Liquidity Current Ratio Quick Ratio Asset Management Receivables Turnover Inventory Turnover Days Inventory Total Asset Turnover Debt Long-term Debt to Common Equity Total Debt to Total Assets Profitability Net Profit Margin Return on Total Assets Return on Common Equity Gross Profit Margin 3 % 0.11 0.06 0.00 0.64 0.03 0.03 0.10 100% 0.01 0.00 0.14 0.00 0.17 0.12 0.02 0.00 0.26 71% 0.01 0.28 29% 4 % 0.58 0.00 0.05 0.05 0.00 0.00 0.33 100% 0.00 0.00 0.17 0.00 0.07 0.54 0.00 0.00 0.00 79% 0.00 0.21 21% 5 % 0.02 0.10 0.06 0.70 0.00 0.02 0.08 100% 0.01 0.04 0.09 0.01 0.06 0.05 0.14 0.02 0.11 53% 0.00 0.47 47% 11.85 11.85 1.43 1.00 0.73 0.56 2.63 2.31 0.91 0.57 2.88 NC 0.00 0.31 15.13 9.97 36.09 1.32 15.03 NC 0.00 1.03 NC 24.25 14.85 1.53 9.96 14.27 25.23 1.07 12.20 2.85 13.55 9.93 44.30 13.09 250.92 53.79 10.35 9.48 12.73 3.76 19.11 19.05 3.57 4.64 8.75 45.09 7.08 6.78 24.61 18.06 (20.42) (19.21) (89.77) 23.53 6.40 6.94 14.70 21.41 * Balance Sheet data is expressed as percentage of Total Assets NC = Cannot be calculated Source: 1998 Compustat Reported 10K Filings 2010 Florida International University Page 2 of 4 FIU ACG 6175 Financial Reporting and Analysis 6 % 0.03 0.14 0.09 0.57 0.08 0.00 0.10 100% 0.00 0.12 0.08 0.01 0.13 0.32 0.05 0.00 0.11 82% 0.00 0.18 18% 7 % 0.20 0.22 0.12 0.39 0.01 0.01 0.03 100% 0.00 0.14 0.03 0.08 0.19 0.19 0.00 0.01 0.07 71% 0.00 0.29 29% 8 % 0.24 0.34 0.36 0.01 0.02 0.03 0.01 100% 0.05 0.47 0.22 0.00 0.00 0.16 0.00 0.00 0.08 96% 0.00 0.04 4% 9 % 0.13 0.59 0.00 0.01 0.01 0.19 0.07 100% 0.00 0.15 0.62 0.00 0.00 0.09 0.00 0.00 0.06 92% 0.00 0.08 8% 10 % 0.08 0.19 0.24 0.44 0.00 0.00 0.06 100% 0.02 0.03 0.11 0.00 0.09 0.26 0.00 0.00 0.07 57% 0.00 0.43 43% 11 % 0.04 0.02 0.34 0.52 0.05 0.00 0.03 100% 0.02 0.00 0.21 0.01 0.10 0.19 0.00 0.04 0.01 57% 0.00 0.43 43% 12 % 0.09 0.05 0.01 0.70 0.03 0.07 0.05 100% 0.00 0.00 0.06 0.00 0.08 0.24 0.03 0.00 0.01 42% 0.00 0.58 58% 13 % 0.29 0.09 0.00 0.16 0.17 0.21 0.08 100% 0.00 0.00 0.04 0.00 0.36 0.17 0.00 0.00 0.16 73% 0.00 0.27 27% 14 % 0.62 0.07 0.00 0.07 0.00 0.00 0.24 100% 0.00 0.00 0.03 0.04 0.18 0.00 0.00 0.00 0.00 26% 0.04 0.70 74% 0.87 0.48 1.33 0.96 1.27 0.78 0.93 0.93 2.19 1.08 1.26 0.18 1.26 1.02 1.04 0.93 2.77 2.69 10.56 6.78 53.06 1.36 4.22 1.54 233.54 0.92 0.40 0.13 2718.66 0.12 0.21 NC 2.94 0.13 8.21 4.02 89.65 1.72 131.46 6.37 56.56 2.89 22.22 73.17 4.92 1.03 18.09 NC 0.00 1.70 11.87 NC 0.00 0.79 181.45 44.26 66.78 33.40 478.79 67.41 109.46 23.86 61.13 30.40 45.50 21.23 41.76 24.56 62.21 16.80 0.00 0.00 7.43 9.95 56.48 55.57 22.52 19.65 67.96 81.05 3.53 0.41 12.57 60.21 12.82 1.18 15.19 60.48 4.03 6.64 15.70 38.37 3.22 8.86 20.98 22.36 6.33 6.71 11.55 26.95 3.54 4.16 15.38 38.12 31.00 19.96 28.52 95.38 2010 Florida International University Page 3 of 4 FIU ACG 6175 Financial Reporting and Analysis Exhibit 2 Represented Industries Complete the chart. Company Number Code Industry A Airline B Bank C Brewery D Department Store E Discount Retailer F Fast Food Retailer/Franchiser G Food Products Manufacturer H Insurance Company I Internet Retailer J Internet Service Provider K Oil Company (fully integrated) L Pharmaceutical Manufacturer M Securities Brokerage N Software Manufacturer 2010 Florida International University Rationale Page 4 of 4