Presented here is selected information from the 2016 fiscal-Year 10-K reports of four companies. The four companies, in alphabetical order, are:

AT&T, Inc., a company that provides communications and digital entertainment; Deere & Company, a manufacturer of heavy machinery; Starbucks, a company that sells coffee products; and Tiffany & Company, a company that operates high-end jewelry and department stores.

The data for the companies, presented in the order of the amount of their sales in millions of dollars, are as follows.

Required

a. Divide the class into groups of four or five students per group and then organize the groups into four sections. Assign Task 1 to the first section of groups, Task 2 to the second section, Task 3 to the third section, and Task 4 to the fourth section.

Group                                                                         Tasks

(1) Assume that you represent AT&T. Identify the set of financial data (Column A, B, C, or D) that relates to your company.

(2) Assume that you represent Deere. Identify the set of financial data (Column A, B, C, or D) that relates to your company.

(3) Assume that you represent Starbucks. Identify the set of financial data (Column A, B, C, or D) that relates to your company.

(4) Assume that you represent Tiffany. Identify the set of financial data (Column A, B, C, or D) that relates to your company.

In addition to the ratios presented in this chapter, you might also find it useful to compute a ratio from the first course of accounting, the gross margin percentage (Gross margin ÷ Sales). 

b. Select a representative from each section. Have the representative explain the rationale for the group’s selection. The explanation should include a set of ratios that support the group’s conclusion.

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A B D $4,104.9 1,613.6 Sales Cost of goods sold Net earnings Inventory $163,786 76,884 $26,644.0 18,248.9 1,523.9 $21,315.9 8,511.1 12,976 2,817.7 463.9 3,340.5 29,741.1 1,378.5 2,225.0 Accounts receivable 16,794 768.8 206.4 Total assets 403,821 57,981.4 14,329.5 5,129.7