Review Case $6.$

The case is straightforward; mate the description of the company to the financial profile derived from the ratios. For each of the eight pairs, provide at least three justifications. You do not have to explain differences across industries.

Case Tips

A common$-$sized balance sheet facilitates comparison between two or more firms of different sizes in the same industry. To common size balance sheet information, each account on the balance sheet is divided by Total Assets. To common size income statement information, each account on the income statement is divided by Sales. It is easy to interpret and use common$-$size data since each entry is a percent. For example, on page $108$ in the Bruner textbook, Company A has $6\%$ of its assets in Cash & Short$-$term Investments.