Exhibits 2.4 and 2.5 in the textbook show industry averages for inventories and net fixed assets as a percentage of total assets taken from The Risk Management Association, Annual Statement Studies. This book may not be available at your school library; however, you can create your own industry average by researching other companies in the same industry.

Search for the largest semiconductor technology companies based on market capitalization. Choose the five largest companies that are based in the United States and locate the most recent balance sheets in the financial statements for these five companies. Using the information from the balance sheet for each of these companies, calculate the percentage of accounts receivable, inventories, net fixed assets, accounts payable, and long-term debt as a percentage of total assets. Add together the five percentages for each category and divide by five to create an industry average that could be used for comparison purposes.

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EXHIBIT 2.4 Inventories as a Percentage of Total Assets Manufacturing Pharmaceutical preparations Upholstered household furniture Sporting and athletic goods Wholesale Drugs Furniture Sporting and recreational goods Retail Pharmacies and drug stores % 20.4 35.9 39.4 33.2 33.0 44.4 32.4 Furniture stores 47.0 Sporting goods stores 59.1 Source: Based on The Risk Management Association, Annual Statement Studies-2013-2014, 2013 Philadelphia, PA 2013.