1. Write one paragraph about the asset sections of the balance sheets, one paragraph about the liability sections, and one paragraph about the equity sections. In each paragraph, discuss the differences between various industries. How did you identify each balance sheet as belonging to a particular industry? Mention any outliers or other numbers that jumped out at you.

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 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 5. Computer software developer 6. Department store chain 7. Electric and gas utility 219-046 -2- Exhibit 1 Balance Sheet Percentages and Selected Financial Data for Unidentified Industries Line A B D E F G H 1 J K L M N 12 5 4 3 8 68 1 4 55 15 3 6 16 0 3 54 21 31 10 14 0 35 10 1 5 1 3 64 26 52 10 1 3 11 23 15 2 25 2 49 8 13 9 2 7 4 64 4 61 0 24 1 10 49 7 0 1 16 26 11 11 48 0 14 16 4 4 18 4 57 13 22 19 0 4 9 47 2 59 22 15 23 100 100 100 100 100 100 100 0 6 3 NM Balance Sheet Percentages Cash and Marketable Securities 2. Accounts Receivable Inventories Other Current Assets Property, Plant, and Equipment Other Assets Total Assets 8. Notes Payable 9. Accounts Payable 10. Accrued Items 11. Other Current Liabilities 12. Long-term Debt 13. Other Liabilities 14. Total Liabilities 15. Retained Eamings + Accumulated Loss 16. Treasury Stock 17. Other Equity Accounts 18. Total Equity 19. Total Liabilities and Equity 3 6 10 0 29 15 63 100 3 3 2 2 28 35 72 30 16 6 9 15 77 2 3 2 15 28 18 68 0 26 15 18 9 8 78 8 20 21 58 100 6 15 6 10 36 14 87 1 17 7 15 33 14 88 100 75 0 0 4 7 4 89 3 1 0 8 12 3 1 12 9 21 19 65 100 10 16 3 10 32 11 1 13 17 30 11 28 100 100 5 NM 6 37 3 4 55 81 37 2021 ment is authorized for use only by Jason Kaufman in PBMA 632 Analyzing Financial Information Spring 2021 taught by Stephanie Miler, Quinnipiac University from Jan 2021 to Jun 56 46 -15 6 37 -32 -52 50 42 -79 5 -2 21 23 -12 -64 100 24 11 -4 3 42 -2 48 -7 -1 21 13 100 38 -5 2 35 -47 13 18 28 44 -39 14 -2 0 46 45 28 32 35 12 11 88 35 0 19 100 100 100 100 100 100 100 100 100 100 100 100 100 1.1 0.9 0.1 0.8 0.2 0.8 N/A 136 Selected Financial Data 20. Current Assets/Current Liabilities 21. Cash, MS, AR/Current Liabilities 22. Inventory Tumover (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% 1.4 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 2% 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 88 0.29 82 0.43 33% 14% 3.1 44% 12.8 41% 2.7 6 0.09 68 2.09 -3% -7% 4.2 -30% 2.2 1.1 0.4 4.9 3 0.34 52 1.91 3% 5% 8.3 45% 6.8 10% 0.8 0.6 21.9 52 0.42 114 0.64 -5% -3% 8.0 -25% -1.4 7% 1.1 0.8 NA 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 0.8 1.2 0.7 0.4 NA 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% 14.6 5 0.42 22 3.30 2% 5% 5.4 28% 3.5 0.08 10 0.50 1% 1% 2.2 1% 21% NA 57% 2.7 3% 13% 10% 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 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 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 5. Computer software developer 6. Department store chain 7. Electric and gas utility 219-046 -2- Exhibit 1 Balance Sheet Percentages and Selected Financial Data for Unidentified Industries Line A B D E F G H 1 J K L M N 12 5 4 3 8 68 1 4 55 15 3 6 16 0 3 54 21 31 10 14 0 35 10 1 5 1 3 64 26 52 10 1 3 11 23 15 2 25 2 49 8 13 9 2 7 4 64 4 61 0 24 1 10 49 7 0 1 16 26 11 11 48 0 14 16 4 4 18 4 57 13 22 19 0 4 9 47 2 59 22 15 23 100 100 100 100 100 100 100 0 6 3 NM Balance Sheet Percentages Cash and Marketable Securities 2. Accounts Receivable Inventories Other Current Assets Property, Plant, and Equipment Other Assets Total Assets 8. Notes Payable 9. Accounts Payable 10. Accrued Items 11. Other Current Liabilities 12. Long-term Debt 13. Other Liabilities 14. Total Liabilities 15. Retained Eamings + Accumulated Loss 16. Treasury Stock 17. Other Equity Accounts 18. Total Equity 19. Total Liabilities and Equity 3 6 10 0 29 15 63 100 3 3 2 2 28 35 72 30 16 6 9 15 77 2 3 2 15 28 18 68 0 26 15 18 9 8 78 8 20 21 58 100 6 15 6 10 36 14 87 1 17 7 15 33 14 88 100 75 0 0 4 7 4 89 3 1 0 8 12 3 1 12 9 21 19 65 100 10 16 3 10 32 11 1 13 17 30 11 28 100 100 5 NM 6 37 3 4 55 81 37 2021 ment is authorized for use only by Jason Kaufman in PBMA 632 Analyzing Financial Information Spring 2021 taught by Stephanie Miler, Quinnipiac University from Jan 2021 to Jun 56 46 -15 6 37 -32 -52 50 42 -79 5 -2 21 23 -12 -64 100 24 11 -4 3 42 -2 48 -7 -1 21 13 100 38 -5 2 35 -47 13 18 28 44 -39 14 -2 0 46 45 28 32 35 12 11 88 35 0 19 100 100 100 100 100 100 100 100 100 100 100 100 100 1.1 0.9 0.1 0.8 0.2 0.8 N/A 136 Selected Financial Data 20. Current Assets/Current Liabilities 21. Cash, MS, AR/Current Liabilities 22. Inventory Tumover (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% 1.4 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 2% 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 88 0.29 82 0.43 33% 14% 3.1 44% 12.8 41% 2.7 6 0.09 68 2.09 -3% -7% 4.2 -30% 2.2 1.1 0.4 4.9 3 0.34 52 1.91 3% 5% 8.3 45% 6.8 10% 0.8 0.6 21.9 52 0.42 114 0.64 -5% -3% 8.0 -25% -1.4 7% 1.1 0.8 NA 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 0.8 1.2 0.7 0.4 NA 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% 14.6 5 0.42 22 3.30 2% 5% 5.4 28% 3.5 0.08 10 0.50 1% 1% 2.2 1% 21% NA 57% 2.7 3% 13% 10% 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