Please answer the following question on The Case of the Unidentified Healthcare Companies - 2010. List each question followed by your answer below the question.

Identify the companies with descriptions of the case for A, B, D, F, H, I, K, L, and M.Match A,B,D,F,H,I,K,L with company descriptions) List the type of healthcare segment they represent (Biotechnology, Community Nursing, Distributor (medical), etc.)

Support your answers with data from each firms common size financial statements.

Note the common size financial information for firms F and K is relatively similar. A

B

D

F

H

I

K

L

M

	A	B	C	D	E	F	G	H	I	J	K	L	M	N
Cash and Marketable Securities	11	66	20	13	3	7	8	9	3	6	9	16	14	0
Accounts Receivable	3	0	18	29	13	15	14	15	20	10	14	14	12	41
inventory	0	0	0	33	0	10	0	0	13	0	4	10	5	0
other current assets	4	1	1	1	3	5	6	8	4	3	1	5	4	9
net PP&E	1	3	5	3	8	11	40	54	10	10	10	30	9	40
Goodwill	13	27	55	13	67	37	22	9	41	59	44	5	30	0
Intangibles	2	1	1	2	5	12	3	3	6	10	16	0	9	0
Other assets	66	2	0	6	1	3	7	2	3	2	2	20	17	10
total assets	100	100	100	100	100	100	100	100	100	100	100	100	100	100
notes¤t debt payable	1	2	0	0	4	4	3	0	0	2	4	0	9	9
account payable	12	2	1	47	1	8	3	9	11	2	2	4	1	21
accrued expenses	6	6	14	9	13	9	10	7	11	8	7	3	8	6
other current liabilities	3	5	0	4	1	2	0	6	0	0	1	17	0	6
long-term debt	10	6	0	8	15	13	42	54	20	34	39	24	25	27
other liabilities	44	23	0	5	3	8	13	15	7	7	8	17	5	0
equity	1	194	138	1	31	35	42	43	13	9	38	20	0	31
retained earnings	23	-138	-53	26	32	21	-13	-34	38	38	1	15	52	0
total liabilities and net worth	100	100	100	100	100	100	100	100	100	100	100	100	100	100
income statement %
Revenue	100	100	100	100	100	100	100	100	100	100	100	100	100	100
COGS or Cost of sales	-75	-14	-69	-95	-48	-47	-66	-60	-71	-58	-46	-19	-24	-49
Gross profit	25	86	31	5	52	53	34	40	29	42	54	81	76	51
R&D	0	-540	0	0	0	-6	0	0	0	0	-5	-20	-9	0
SG&A	-17	-119	-25	-3	-35	-23	-25	-30	-22	-21	-20	-26	-37	-24
Depreciation & Amortization	-1	-29	-1	0	-2	-7	-2	-4	-2	-3	-8	-6	-5	-1
non-operating income	0	-20	0	0	0	0	0	1	0	0	0	-4	2	0
EBIT	7	-622	5	2	15	17	7	7	5	18	21	25	27	26
Interest expense	-1	-8	0	0	-1	-1	-3	-4	-2	-2	-5	-1	-2	-1
income taxes	-2	0	-1	-1	-5	-1	-2	0	0	-6	-5	-4	-5	0
net income	4	-630	4	1	9	15	2	3	3	10	11	20	20	25
5 tear revenue growth	9%	-9%	-7%	5%	32%	21%	20%	1%	2%	6%	11%	8%	7%	1%
CA/CL	0.81	4.59	2.65	1.26	0.95	1.6	1.76	1.39	1.82	1.59	1.95	1.9	1.92	1.19
cash&equivalebt/ CL	0.79	0.99	0.98	0.55	0.85	0.79	0.79	0.75	0.58	0.81	0.08	0.67	0.72	0.97
Total debt/total asset	0.11	0.08	0	0.08	0.18	0.45	0.45	0.54	0.2	0.36	0.43	0.24	0.34	0.69
L-T debt/capitalization	0.3	0.02	0	0.13	0.22	1.13	1.13	2.08	0.31	0.32	0.45	0.16	0.17	0.47
Revenue/total assets	0.9	0.05	1.44	3.86	1.29	1.2	1.2	1.13	1.25	0.87	0.66	0.8	0.56	6.97
net profit/total asset	0.03	-0.33	0.06	0.04	0.12	0.02	0.02	0.03	0.03	0.09	0.08	0.16	0.11	1.76
total asset/ bet worth	4.06	1.78	1.18	3.74	1.59	3.5	3.5	11.41	1.94	2.13	2.58	2.88	1.92	3.27
net profit/net worth	0.13	-0.59	0.07	0.17	0.19	0.1	0.09	0.37	0.06	0.19	0.19	0.45	0.21	5.74
days of inventory				33		186			52		48	245	142
receivables collection period(days)	13	34	46	27	36	132	43	47	57	41	78	64	77	27

1. Biotechnology (global biotechnology firm engaged in the discovery and development of breakthrough small molecule drugs for serious diseases; revenues are generated primarily through collaborative R&D, license fees, and royalties)

2. Community Nursing (national network of branches provides fully trained care workers, registered nurses, healthcare assistants, and support workers to local authorities, primary care trusts, private individuals, industry, residential care homes and hospitals; grew initially by roll-up M&A but such activity has slowed down recently). High SG&A and low COGS because community Nursing provide more human resource related services, which needs training. Also, They may have low COGS because they are not providing products.

3. Distributor (Medical) (global supplier of medical products and services, from pharmaceuticals to medical supplies)

4. Durable Medical Equipment (DME) Licensee and Seller (leading licensee and manufacturer of DME, including wheelchairs, bariatric equipment, disability scooters, respiratory products, and other homecare products; recent regulation of qualification processes for Medicare, the primary payor for this DME, has adversely affected collections)

5. Durable Medical Equipment (DME) Developer and Seller (leading developer and manufacturer of DME, including hospital beds, specialized mattresses, and therapy systems; development of DME requires relatively fast-depreciating/amortizing assets)

6. Home Care Provider (through a national network of home health care agencies, provides skilled nursing and home health aide services to primarily geriatric patients covered by Medicare; growing fast primarily through roll-up M&A)

7. Hospital (Diversified) (owns or leases about 50 acute care hospitalsprimarily community hospitalswith a total of almost 15,000 beds in a dozen states)

8. Insurer (one of the largest health insurers in the US (HMO, PPO, POS, HSA, traditional indemnity, dental, vision, behavioral health, Medicare), which also offers life, disability, and long- term care insurance)

9. Lab / Diagnostic Firm (one of the worlds leading diagnostic clinical labs, with more than 2,000 patient service centers, 30 primary labs, and 150 response labs; IP strategy is primarily based on purchased patents rather than know-how developed in-house)

10. Medical Device Manufacturer (leading researcher, developer, and manufacturer of highly profitable, implantable biomedical devices)

11. Nursing Home Operator (provides long-term, subacute, and related health care services at about 200 managed inpatient facilities in 25 states, totaling some 23,000 beds; primarily nursing centers for seniors, but also offers assisted and independent living arrangements and behavioral health services; growth has come primarily from M&A activity, including three large recent acquisitions)

12. Pharmaceuticals (Branded) (conducts intensive research to develop novel medicines for a wide variety of ailments, with sales and marketing in over 130 countries)

13. Pharmaceuticals (Generic) (world-leading generic pharmaceuticals business, making generic versions of hundreds of brand-name drugs and selling them globally)

14. Private Practice (private practice / multi-specialty clinic of roughly 40 doctors delivering state-of- the-art care, across most major specialties, at 8 locations within one major US metropolitan area)