financial statement picture (Exhibit 1 & 2

) and answer the questions:

1.  Match each industry described to a set of financial statement information (company letters A through I)

2. three reasons for each industry, addressing why you matched that industry to a particular set of financial information.

Transcribed Image Text:

INCOME STATEMENT Net Sales Cost of Goods Sold Depreciation & Amortization Gross Profit R&D Expense Selling, Gen'l & Admin Exp Other Operating Expense Operating Income Non-Operating Income Interest Expense Pretax Income Taxes Other Income Net Income BALANCE SHEET Assets Cash Receivables Inventories Other Current Assets Total Current Assets Net Property, Plant & Equip Other Long Term Assets Total Assets Liabilities Short Term Debt Accounts Payable Other Current Liabilities Total Current Liabilities Long Term Debt Other Long Term Liabilities Total Liabilities Stockholders' Equity Minority Interest Preferred Stock Common Shareholders Equity Total Liabilities and Stockholders' Equity A 100.0% 75.5% 7.2% 17.3% 0.0% 8.9% 0.0% 8.4% (0.8%) 3.5% 4.1% 1.1% 0.0% 3.0 10.0% 28.9% 5.4% 0.0% 44.2% 30.4% 25.3% 100.0% 38.4% 6.4% 0.0% 44.8% 0.0% 44.7% 89.5% 0.0% 0.0% 10.5% 100.0% B 100.0% 60.4% 11.1% 28.5% 0.0% 1.8% 6.4% 20.2% 0.0% 6.4% 13.8% 5.3% 0.0% 8.5% 0.2% 7.2% 1.5% 1.2% 10.1% 79.3% 10.6% 100.0% 8.2% 3.6% 4.4% 16.2% 28.4% 22.2% 66.8% 0.0% 5.4% 27.8% 100.0% с 100.0% 89.1% 5.7% 5.2% 0.0% 2.3% 9.9% (7.0%) 0.1% 1.1% (8.0%) (1.4%) 0.0% (6.6%) 2.7% 6.1% 19.9% 0.4% 29.1% 47.4% 23.5% 100.0% 1.0% 8.0% 9.7% 18.7% 9.7% 52.6% 81.1% 0.0% 0.3% 18.6% 100.0% D 100.0% 80.9% 0.7% 18.4% 0.0% 10.5% 1.1% 6.8% 0.5% 2.6% 4.7% 1.0% 0.0% 3.7% 1.4% 3.0% 74.9% 12.6% 91.9% 0.0% 8.1% 100.0% 4.5% 10.2% 7.6% 22.3% 38.3% 0.0% 60.6% 0.0% 0.3% 39.1% 100.0% E 100.0% 34.9% 9.1% 56.0% 8.7% 11.1% 0.0% 36.2% 1.9% 0.1% 38.1% 13.3% 0.0% 24.7% 33.7% 15.7% 5.4% 2.8% 57.7% 35.8% 6.6% 100.0% 1.6% 4.1% 14.8% 20.5% 3.1% 5.4% 28.9% 0.0% 0.0% 71.1% 100.0% E 100.0% 75.6% 1.4% 23.0% 0.0% 19.5% 0.0% 3.4% 0.0% 1.2% 2.3% 0.9% 0.0% 1.4% 0.0% 5.6% 29.4% 5.4% 40.4% 52.6% 7.0% 100.0% 0.4% 28.3% 17.9% 46.6% 62.8% 10.9% 120.3% 0.0% 0.0% (20.3%) 100.0% G 100.0% 21.4% 7.4% 71.2% 16.2% 27.1% 0.0% 27.9% 3.7% 3.9% 27.6% 6.9% 0.0% 20.7% 6.7% 12.1% 6.2% 2.2% 27.2% 30.1% 42.7% 100.0% 8.5% 5.8% 15.2% 29.5% 17.6% 10.3% 57.4% 0.0% 0.0% 42.6% 100.0% H 100.0% 64.9% 5.3% 29.8% 0.0% 15.4% 1.1% 13.3% (1.5%) 4.2% 7.6% 1.4% 0.0% 6.2% 0.7% 6.6% 24.3% 1.5% 33.1% 35.3% 31.6% 100.0% 0.7% 4.4% 7.7% 12.8% 34.1% 11.3% 58.2% 0.0% 0.0% 41.8% 100.0% ! 100.0% 65.7% 3.5% 30.8% 0.0% 27.3% 0.0% 3.4% 2.9% 0.9% 5.5% 2.2% 0.0% 3.3% 1.0% 26.4% 26.6% 2.6% 56.7% 42.6% 0.7% 100.0% 8.0% 11.5% 9.7% 29.1% 12.2% 4.2% 45.5% 0.0% 0.0% 54.5% 100.0% INCOME STATEMENT Net Sales Cost of Goods Sold Depreciation & Amortization Gross Profit R&D Expense Selling, Gen'l & Admin Exp Other Operating Expense Operating Income Non-Operating Income Interest Expense Pretax Income Taxes Other Income Net Income BALANCE SHEET Assets Cash Receivables Inventories Other Current Assets Total Current Assets Net Property, Plant & Equip Other Long Term Assets Total Assets Liabilities Short Term Debt Accounts Payable Other Current Liabilities Total Current Liabilities Long Term Debt Other Long Term Liabilities Total Liabilities Stockholders' Equity Minority Interest Preferred Stock Common Shareholders Equity Total Liabilities and Stockholders' Equity A 100.0% 75.5% 7.2% 17.3% 0.0% 8.9% 0.0% 8.4% (0.8%) 3.5% 4.1% 1.1% 0.0% 3.0 10.0% 28.9% 5.4% 0.0% 44.2% 30.4% 25.3% 100.0% 38.4% 6.4% 0.0% 44.8% 0.0% 44.7% 89.5% 0.0% 0.0% 10.5% 100.0% B 100.0% 60.4% 11.1% 28.5% 0.0% 1.8% 6.4% 20.2% 0.0% 6.4% 13.8% 5.3% 0.0% 8.5% 0.2% 7.2% 1.5% 1.2% 10.1% 79.3% 10.6% 100.0% 8.2% 3.6% 4.4% 16.2% 28.4% 22.2% 66.8% 0.0% 5.4% 27.8% 100.0% с 100.0% 89.1% 5.7% 5.2% 0.0% 2.3% 9.9% (7.0%) 0.1% 1.1% (8.0%) (1.4%) 0.0% (6.6%) 2.7% 6.1% 19.9% 0.4% 29.1% 47.4% 23.5% 100.0% 1.0% 8.0% 9.7% 18.7% 9.7% 52.6% 81.1% 0.0% 0.3% 18.6% 100.0% D 100.0% 80.9% 0.7% 18.4% 0.0% 10.5% 1.1% 6.8% 0.5% 2.6% 4.7% 1.0% 0.0% 3.7% 1.4% 3.0% 74.9% 12.6% 91.9% 0.0% 8.1% 100.0% 4.5% 10.2% 7.6% 22.3% 38.3% 0.0% 60.6% 0.0% 0.3% 39.1% 100.0% E 100.0% 34.9% 9.1% 56.0% 8.7% 11.1% 0.0% 36.2% 1.9% 0.1% 38.1% 13.3% 0.0% 24.7% 33.7% 15.7% 5.4% 2.8% 57.7% 35.8% 6.6% 100.0% 1.6% 4.1% 14.8% 20.5% 3.1% 5.4% 28.9% 0.0% 0.0% 71.1% 100.0% E 100.0% 75.6% 1.4% 23.0% 0.0% 19.5% 0.0% 3.4% 0.0% 1.2% 2.3% 0.9% 0.0% 1.4% 0.0% 5.6% 29.4% 5.4% 40.4% 52.6% 7.0% 100.0% 0.4% 28.3% 17.9% 46.6% 62.8% 10.9% 120.3% 0.0% 0.0% (20.3%) 100.0% G 100.0% 21.4% 7.4% 71.2% 16.2% 27.1% 0.0% 27.9% 3.7% 3.9% 27.6% 6.9% 0.0% 20.7% 6.7% 12.1% 6.2% 2.2% 27.2% 30.1% 42.7% 100.0% 8.5% 5.8% 15.2% 29.5% 17.6% 10.3% 57.4% 0.0% 0.0% 42.6% 100.0% H 100.0% 64.9% 5.3% 29.8% 0.0% 15.4% 1.1% 13.3% (1.5%) 4.2% 7.6% 1.4% 0.0% 6.2% 0.7% 6.6% 24.3% 1.5% 33.1% 35.3% 31.6% 100.0% 0.7% 4.4% 7.7% 12.8% 34.1% 11.3% 58.2% 0.0% 0.0% 41.8% 100.0% ! 100.0% 65.7% 3.5% 30.8% 0.0% 27.3% 0.0% 3.4% 2.9% 0.9% 5.5% 2.2% 0.0% 3.3% 1.0% 26.4% 26.6% 2.6% 56.7% 42.6% 0.7% 100.0% 8.0% 11.5% 9.7% 29.1% 12.2% 4.2% 45.5% 0.0% 0.0% 54.5% 100.0%