Question 1 Service Industry: Identify Most Significant Components and Match the Company Name to the Column

There are 5 unidentified companies in the service industry: Airline, commercial bank, parcel delivery service, software service provider, and social networking service. They are columns B, I, J, K, and N. Next, review Exhibit 1. What type of assets, liabilities, and financial ratios in Exhibit 1 are most significant to each of the 5 unidentified service companies? [Do you see any interesting numbers (extreme values like high, low, zero, negative) in Exhibit 1 for these service companies?]

Column	Most Significant Assets	Most Significant Liabilities	Most Significant Ratios	Match the Unidentified Company Name
B
I				Software service provider
J
K
N				Parcel delivery service

Question 2 Retail Industry: Identify Most Significant Components and Match the Company Name to the Column

There are 4 unidentified companies in the retail industry: Bookstore chain, department store chain, online retailer, and retail grocery. They are columns C, F, G, and M. Next, review Exhibit 1. What type of assets, liabilities, and financial ratios in Exhibit 1 are most significant to each of the 4 unidentified retail companies? [Do you see any interesting numbers (extreme values like high, low, zero, negative) in Exhibit 1 for these retail companies?]

Column	Most Significant Assets	Most Significant Liabilities	Most Significant Ratios	Match the Unidentified Company Name
C				Bookstore chain
F				Online retailer
G				Retail Grocery
M				Department store chain

Question 3 Manufacturing Industry: Identify Most Significant Components and Match the Company Name to the Column

There are 5 unidentified companies in the manufacturing industry: Aircraft manufacturer, computer software developer, electric & gas utility, IT hardware & storage provider, and pharmaceutical company. They are columns A, D, E, H, and L. Next, review Exhibit 1. What type of assets, liabilities, and financial ratios in Exhibit 1 are most significant to each of the 5 unidentified manufacturing companies? [Do you see any interesting numbers (extreme values like high, low, zero, negative) in Exhibit 1 for these manufacturing companies?]

Column	Most Significant Assets	Most Significant Liabilities	Most Significant Ratios	Match the Unidentified Company Name
A
D
E
H
L				Pharmaceutical company

The Case of the Unidentified Industries 2018 Exhibit 1 presents the balance sheets (in percentage form) and other selected financial data for 14 firms drawn from 14 different industries. While there are clear differences in the financial structures of different firms within a single industry, the firms selected have figures that are broadly typical of those in the industry Try to match the 14 firms operating in the 14 industries named below with the 14 sets of financial data presented in Exhibit 1. Use any approach you find helpful. 1. Aircraft manufacturer 2. Airline 3. Bookstore chain 4. Commercial bank 5. Computer software developer 6. Department store chain 7. Electric and gas utility 8. IT hardware and storage provider 9. Online retailer 10. Parcel delivery service 11. Pharmaceutical company 12. Retail grocery chain 13. Software as a service provider for customer relationship management 14. Social networking service Why does each of the industries have the patterns of assets use revealed in Exhibit 1? The sources of financing? The profitability? The inventory turnover? The accounts receivable collection period? 219-016 -2- Exhibit 1 Balance Sheet Percentages and Selected Financial Data for Unidentified Industries A B DE F G H 1 J K L M N 1 4 55 15 3 22 19 12 5 4 3 8 68 100 6 16 0 3 54 21 100 31 10 14 0 35 10 100 1 5 1 3 64 26 100 52 10 1 3 11 23 13 9 2 7 4 64 4 61 0 24 1 10 100 49 7 0 1 16 26 100 11 11 48 0 14 16 100 4 4 18 4 57 13 2 59 22 100 15 23 100 4 9 47 100 100 Line Balance Sheet Percentages 1. Cash and Marketable Securities 2 Accounts Receivable Inventories Other Current Assets Property. Plant, and Equipment Other Assets Total Assetsa Notes Payable Accounts Payable 10. Accrued Items 11. Other Current Liabilities 12 Long-term Debt 13. Other Liabilities 14. Total Liabilities 15. Retained Earnings + Accumulated Loss 16. Treasury Stock 17 Other Equity Accounts 18. Total Equity 19. Total Liabilities and Equitya 6 3 1 8 20 21 58 3 6 10 0 29 15 63 0 30 16 6 9 15 77 3 3 2 2 28 35 72 2 3 2 15 28 18 68 0 26 15 18 B 76 15 2 25 2 49 8 100 1 17 7 15 33 14 88 56 -79 35 12 75 0 0 4. 7 4 89 6 15 6 10 36 14 87 -7 -1 21 13 100 0 NM 3 1 0 8 12 100 10 16 3 10 32 1 13 17 30 11 28 100 document is authorized for use only by L-Wen Yu in MBA 5220 Ent Fin Perf KIMBRO taught by MARINILKA KIMBRO, Seattle University from Dec 2020 to Jun 2021 3 1 12 9 21 19 65 38 -5 2 35 100 100 5 NM 6 37 3 4 55 81 44 -52 50 42 46 -15 6 37 100 5 -2 21 23 100 10 -1 18 28 100 37 -32 28 32 100 -12 -64 100 24 11 -4 3 11 42 -2 48 88 35 -47 13 0 100 44 -39 14 19 100 -2 0 46 45 100 100 100 100 100 100 0.8 0.6 NA Selected Financial Data 20. Current Assets/Current Liabilities 21. Cash, MS, AR/Current Liabilities 22. Inventory Turnover (X) 23. Receivables Collection Period (days) 24. Total Debt/Total Assets 25. Payables Period (days) 26. Revenue/Total Assets 27 Net Profit/Revenue 28. Net Profit/Total Assets 29. Total Assets/Equity 30. Net Profit/Equity 31. EBIT/Interest Expense 32. EBITDA/Revenue 1.4 0.9 1.5 57 0.25 151 0.31 23% 7% 2.4 17% 9.7 35% 1.2 NA 47 0.32 41 1.25 7% 9% 2.7 24% 8.7 12% 1.0 0.8 7.7 22 0.09 105 1.63 29 3% 4.3 12% 8.6 9% 1.1 0.6 8.5 60 0.30 92 0.29 11% 3% 3.6 12% 2.8 24% 2.9 2.7 14.4 BB 0.29 82 0.43 33% 14% 3.1 44% 12.8 41% 1.1 0.1 2.7 6 0.09 66 2.09 -3% -7% 4.2 -30% 2.2 3% 1.1 0.4 4.9 3 0.34 52 1.91 3% 5% 8.3 45% 6.8 10% 21.9 52 0.42 114 0.64 -5% -3% 8.0 -25% 1.1 0.B 4678 0.82 NA 0.05 29% 1% 9.3 13% 3.5 36% 12.9 12.6 NA 52 0.00 25 0.48 39% 19% 1.1 21% NA 57% 0.8 1.2 0.7 0.4 1.5 16 41 0.24 0.12 13 65 0.74 1.01 13% 9% 10% 9% 2.9 224.1 28% 1990% 12.2 28.6 21% 13% 0.8 0.2 14.6 5 0.42 22 3.30 2% 5% 5.4 28% 0.9 0.8 NA 136 0.08 10 0.50 1% 1% 2.2 1% 2.7 10% 3.5 7% 4% Source: Compiled from company annual reports Note: N/A = Not applicable; NM Not meaningful, negligible amount Column totals may not add to 100 due to rounding