Presented here are selected data from the 10-K reports of four companies for the 1997 fiscal year. The four companies, in alphabetical order, are 1. BellSouth Corporation, a telephone company that operates in the southeastern United States.

2. Caterpillar, Inc., a manufacturer of heavy machinery.

3. Dollar General Corporation, a company that owns Dollar General Stores discount stores.

4. Tiffany & Company, a company that operates high-end jewelry stores.

The data, presented in the order of the amount of sales, are as follows. Dollar amounts are in millions.

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 BellSouth Corporation. Identify the set of financial data (Column A, B, C, or D) that relates to your company.
(2) Assume that you represent Caterpillar, Inc. Identify the set of financial data (Column A, B, C, or D) that relates to your company.
(3) Assume that you represent Dollar General Corporation. Identify the set of financial data (Column A, B, C, or D) that relates to your company.
(4) Assume that you represent Tiffany & Company. Identify the set of financial data (Column A, B, C, or D) that relates to your company.

b. Select a representative from each section. Have the representatives 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 C D Sales $20,561 $18,110 $2,627.3 $1,017.6 Cost of goods sold 6,254 13,374 1,885.2 453.4 Net earnings 3,261 1,665 144.6 72.8 Inventory or NA 2,603 632.0 386.4 Materials and supplies 398 NA NA Accounts receivable 4,750 3,331 0 NA 99.5 Total assets 36,301 20,756 914.8 827.1