question:

Try to match the five following types of companies with their corresponding balance sheets and financial rations as shown in Exhibit 3.

1) Electric Utility

2) Japanese automobile manufacturer

3) Discount general merchandise retailer

4) Automated test equipment/systems company

5) Upscale apparel retailer

In doing the excercise, consider the operating and competitive characterictics of the industry and their implications for 1) the collection period 2) inventory turn over 3) the amount of plant and equipment 4) the profit margins and profitability and 5) the appropriate financing structure. then identify which one of the five sets of balance sheets and financila ratios match your expectations, given the difficult economic conditions in 2009.

911-12 Assessing a Company's Puture Financial Health Exhibit 3 Unidentified bdustries Balance Sheet Percentages 11.0% 13.3% 2.1% 44% 5% cash 118 39.8 30.9 3.8 4.6 Receivables 61 4.7 3.7 24.6 1.8 lnvenories 10.0 3.8 5.0 43 2.0 Oiler current assets 203 22.1 49.6 74.5 Property and equipment net) -15.6 -34 -4.3 6.3 302 100% 100% 100% 100% Other assets Total assets 1 A% 18.2% 5.4% 5.3% Notes payable 88 8.3 11.0 24.8 2.1 Accounts payable 6.5 8.7 14.2 170 5.9 Other current liabilities 21.7 23.1 34.3 100 33.6 Long-tem debt 2.0 5.6 11.2 22 26.3 on her liabilities Owners' equity 100% 100% 100%, 100% 100% Total Selected Ra tios (5.8%) 1.3%. 5.1% 15% 10.3% Net profitnet sales (3.1%) 0.9% 9.2% 12.6% 6.8% Reum on capital 2.2% 10.8% 28.1% 12.5% Retum on equity 65 1.31 3.25 32 Salesviotal assets 43 232 52 Collection period (days) 147 31 32 A3 Days of inventory 36 2.9 3.8 6.7 A3 Salesfnet property & equipment 2,01 2.79 4.19 2.19 3.73 Total assetsequity 50 16 73 Total liabilities total assets 32% 53% 62% Interest-bearing debt/total capital 59% 19% NM. 4.4 6.0 16 3.2 Times interest earned 1.85 2.01 1.11 current assetseurrent liabilities .67