Inentifying companies based on financial statement information The following ratios are for four companies in different industries. Some of these ratios have been discussed in the textbook, others have not, but their names explain how the ratio was computed. These data are for the companies€™ 2008 fiscal years. The four sets of ratios, presented randomly are:

The four companies to which these ratios relate, listed in alphabetical order, are: Caterpillar, Inc. is a company that manufactures heavy construction equipment. Denny€™s Corporation operated over 1,541 restaurants as of December 31, 2008. Molson Coors Brewing, Inc. is a company that produces beer and related products. Weight Watchers International, Inc. is a company that provides weight loss services and products.
Required
Determine which company should be matched with each set of ratios. Write a memorandum explaining the rationale for your decisions.

Transcribed Image Text:

Company 1 Company 2 Company 4 Company 3 Current assets + Total assets Average days to sell inventory Average days to collect receivables Return on assets Gross profit + Sales Asset turnover 11% 138 83 4% 40% 0.71 $341,958 47% 33 25 5% 20% 15% 20% 21 18% 54% 1.39 $29,057 4% 20% 2.19 S49,865 0.46 $453,407 Sales + Number of full-time employees