Exhibit 1 presents balance sheets in percentage form as well as selected ratios computed from fiscal 2009
Question:
Exhibit 1 presents balance sheets in percentage form as well as selected ratios computed from fiscal 2009 balance sheets and income statements for 13 companies from the following industries:
x airline
x railroad
x pharmaceutical
x commercial banking
x computer and office equipment production and servicing
x discount general-merchandise retail
x electric utility
x fast food restaurant chain
x wholesale food distribution
x supermarket chain
x Internet retailing
x tax preparation and diversified financial services
x computer software development
Study the balance sheet profiles and the financial ratios listed for each of the 13 companies as presented in Exhibit 1.1 Your assignment is to use your intuition, common sense, and basic understanding of the unique attributes of each industry to match each column in the exhibit with one of the industries listed above. Be prepared to give the reasons for your pairings, citing the data that seem to be consistent with the characteristics of the industry you selected.
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | ||
Year end | 1.30.10 | 5.31.09 | 12.31.09 | 4.30.09 | 12.25.09 | 1.31.10 | 12.31.09 | 10.31.09 | 12.31.09 | 1.2.10 | 12.31.09 | 12.31.09 | 12.31.09 | |
Assets: Cash | 4.7% | 26.6% | 23.6% | 31.8% | 4.0% | 4.6% | 46.1% | 11.6% | 8.6% | 0.1% | 18.4% | 5.9% | 0.8% | |
Accts. Receivable | 3.9% | 9.3% | 3.9% | 9.6% | 3.7% | 2.4% | 7.2% | 16.7% | 5.9% | 25.1% | 64.4% | 3.5% | 3.9% | |
Inventory | 21.2% | 0.0% | 2.0% | 0.0% | 0.8% | 19.4% | 15.7% | 5.3% | 7.2% | 28.6% | 0.0% | 0.4% | 1.0% | |
Other CA | 2.4% | 3.2% | 4.7% | 6.6% | 1.0% | 1.8% | 2.0% | 12.1% | 3.7% | 2.1% | 3.0% | 1.5% | 3.9% | |
Total Current Assets | 32.3% | 39.2% | 34.2% | 48.0% | 9.5% | 28.3% | 70.9% | 45.8% | 25.4% | 55.8% | 85.8% | 11.3% | 9.6% | |
Net PP&E | 60.3% | 4.1% | 58.1% | 6.9% | 85.9% | 59.9% | 9.3% | 9.8% | 16.3% | 21.5% | 2.6% | 71.2% | 66.3% | |
Goodwill | 5.0% | 39.7% | 0.0% | 15.9% | 0.0% | 9.4% | 8.9% | 28.8% | 10.6% | 16.7% | 2.1% | 8.0% | 1.2% | |
Other | 2.4% | 17.0% | 7.7% | 29.3% | 4.6% | 2.3% | 10.8% | 15.6% | 47.7% | 6.1% | 9.5% | 9.4% | 22.9% | |
Total Assets | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | |
Liabilities: Accts. Pay. | 16.8% | 0.6% | 7.2% | 13.2% | 3.6% | 17.8% | 40.6% | 12.9% | 2.0% | 24.1% | 74.4% | 2.1% | 0.8% | |
ST Debt | 2.5% | 2.1% | 7.6% | 0.6% | 0.4% | 2.6% | 0.0% | 1.6% | 1.4% | 0.4% | 1.4% | 0.1% | 2.2% | |
Other | 14.1% | 16.6% | 19.5% | 30.9% | 2.9% | 12.1% | 12.7% | 22.9% | 10.6% | 6.4% | 0.7% | 7.7% | 5.7% | |
Total Current Liabilities | 33.4% | 19.3% | 34.3% | 44.7% | 6.9% | 32.5% | 53.3% | 37.5% | 14.1% | 30.9% | 76.4% | 9.9% | 8.7% | |
LT Debt | 32.4% | 19.5% | 41.4% | 20.7% | 29.2% | 21.3% | 0.8% | 12.2% | 14.3% | 27.9% | 9.3% | 34.9% | 29.1% | |
Other | 13.0% | 8.3% | 19.6% | 8.4% | 31.1% | 3.4% | 7.8% | 15.1% | 16.7% | 6.1% | 2.4% | 8.7% | 31.3% | |
Total Liabilities | 78.8% | 47.1% | 95.4% | 73.8% | 67.2% | 57.3% | 61.9% | 64.7% | 45.1% | 64.9% | 88.1% | 53.6% | 69.1% | |
Equity: Minority Interest | 0.3% | 0.0% | 0.0% | 0.0% | 0.1% | 1.3% | 0.0% | 0.0% | 2.2% | 0.0% | 0.0% | 0.0% | 0.0% | |
Net Contributed Capital | -8.3% | 27.4% | 17.3% | -23.4% | 1.7% | 2.4% | 37.2% | 12.0% | 18.2% | 10.0% | 6.1% | -59.5% | 10.6% | |
Retained Earnings + OCI | 29.2% | 25.5% | -12.7% | 49.6% | 31.0% | 39.0% | 0.8% | 23.2% | 34.5% | 25.1% | 5.8% | 105.9% | 20.3% | |
Total Equity | 21.2% | 52.9% | 4.6% | 26.2% | 32.8% | 42.7% | 38.1% | 35.3% | 54.9% | 35.1% | 11.9% | 46.4% | 30.9% | |
Total Liab. & Equity | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | |
ROS | 0.1% | 24.1% | -2.2% | 11.9% | 12.7% | 3.5% | 3.7% | 6.7% | 47.0% | 0.1% | 15.8% | 20.0% | 6.7% | |
Asset Turnover | 3.32 | 0.49 | 0.98 | 0.76 | 0.33 | 2.39 | 1.77 | 1.00 | 0.24 | 5.22 | 0.04 | 0.75 | 0.38 | |
ROA | 0.3% | 11.8% | -2.2% | 9.0% | 4.3% | 8.4% | 6.5% | 6.7% | 11.5% | 0.3% | 0.7% | 15.1% | 2.6% | |
Financial Leverage | 4.71 | 1.89 | 21.66 | 3.81 | 3.05 | 2.34 | 2.63 | 2.83 | 1.82 | 2.85 | 8.40 | 2.15 | 3.24 | |
ROE | 1.4% | 22.3% | -47.8% | 34.5% | 13.0% | 19.7% | 17.2% | 18.9% | 21.0% | 0.8% | 5.5% | 32.4% | 8.3% | |
Current ratio | 0.97 | 2.03 | 1.00 | 1.07 | 1.38 | 0.87 | 1.33 | 1.22 | 1.80 | 1.81 | 1.12 | 1.14 | 1.10 | |
Receivables collection | 4 | 70 | 14 | 46 | 40 | 4 | 15 | 61 | 88 | 18 | 5710 | 17 | 37 | |
Inventory Turnover | 12.0 | N/A | N/A | N/A | 8.4 | 9.2 | 8.7 | 9.2 | 1.1 | 16.8 | N/A | 86.3 | 13.5 | |
Gross margin | 23.2% | 94.2% | N/A | 33.2% | N/A | 25.4% | 22.6% | 23.7% | 67.1% | 8.0% | N/A | 40.8% | 63.4% | |
Dividend payout | 340.0% | 4.5% | 0.0% | 41.0% | 29.9% | 29.4% | 0.0% | 10.0% | 27.0% | 332.6% | 33.5% | 49.1% | 69.2% | |
Revenue growth | 0.8% | 3.7% | -17.4% | -0.1% | -19.7% | 0.9% | 27.9% | -3.2% | 15.0% | 12.5% | -16.8% | -3.3% | -4.1% | |
R & D ratio | N/A | 11.90% | N/A | N/A | N/A | N/A | 5.06% | 2.46% | 21.31% | N/A | N/A | N/A | N/A |
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella