1. Review the asset distribution and profitability data in the table below. Can you match the letters of the columns with the descriptions of the businesses that follow and explain your answer?

ABCDEASSETS Property, plant and equipment 9%74%31%50%23%Intangible assets 261923170Current assets Stock -0110452Debtors 301171912Cash 2233613Other current assets 1321640Total current assets 657463377Total assets 100100100100100Sales to assets 0.4:10.2:10.9:12.2:1 3.4:1SDOH (Stock Days Cost of Sales on Hand) 01253858DDOH (Debtors Day Sales on Hand) 6821653213Profit before tax (as % of sales) 593022

__________Civil Engineering consultants and contractors, providing project design and management services for all types of civil engineering work. (2 marks)

__________ Car retailer selling to the general public through a network of showrooms and franchises. (2 marks)

__________ Food and dairy goods producer and distributor selling under its own label, or on contracting basis to supermarkets, wholesalers, and retailers. (2 marks)

__________ Manufacturer of pharmaceutical products, designing and producing a wide range of products to retailers, wholesalers, government institutions, etc. (2 marks)

__________ Hotel chain owning and managing an international chain of hotels. (2 marks)

Companies A, B, and CPercentage Presentation: Capital Structure ABCLIABILITIES AND EQUITY Long-term debt 17.132.510.2Shareholders funds 51.140.745Current liabilities Creditors 12.511.422.6Short-term bank debt 6.60%6.10%12.70%Accrued expenses 7.67.45.9Other current liabilities 5.11.93.6Total current liabilities 31.826.844.8TOTAL LIABILITIES AND EQUITY 100.00%100.00%100.00%

1. Which business seems to have the highest business risk? What suggests that? (2 marks)
2. Which business seems to have the shortest asset conversion cycle? What suggests that? (2 marks)
3. Which business seems to have the highest need for stability in its capital structure? What suggests that? (2 marks)
4. Which business probably has the highest level of core current assets and fixed assets? What suggests that? (2 marks)