Question: 1. The following selected financial data pertain to four companies: a hotel, a travel agency, a meat packing company and a pharmaceutical company. Required: Match

1. The following selected financial data pertain to four companies: a hotel, a travel agency, a meat packing company and a pharmaceutical company. Required: Match each with the financial information and explain why you made your choice as you did. Balance Sheet Data (component percentages) Cash Accounts Receivable Inventory Property, Plant & Equipment Company 1 7.2 28.0 21.4 32.0 Company Company Company 2 3 4 22.0 6.0 11.2 40.0 3.4 23.0 0.5 0.9 27.4 19.0 75.1 25.0 Income Statement Data (component percentages) Gross Profit 15.2 44.0 Not Not Applicable Applicable 3.3 2.5 Profit before Taxes 1.8 7.0 1.6 1.3 0.5 1.8 Ratios Current ratio (over the last five years) Inventory turnover ratio 27.8 3.4 Not Not Applicable Applicable 2.3 5.8 Debt-to-equity ratio 1.8 1.4
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
