The Case of the Unidentified Industries-2006
From the balance sheet and the financial date given in Exhibition 1, I manage to connect the dates with the companies in the following order:
The online book seller correspond to balance sheet A, due to high inventory turnover but at the same time keeping low inventory, high cash and long term debt. 2.
The book store chain correspond to balance sheet B, due to keeping high inventory, high plant and equipment assets, and profit per revenue is low. 3.
The online direct factory to customer personal pc vendor correspond to balance sheet C, due to high number of account receivable, low inventory, low plant and equipment, but high inventory turnover. Because the inventories are presold, the company doesn’t need long term assets and high inventory. 4.
The pharmaceutical manufacturer corresponds to D, due to high number of assets in other assets (know-how, or some intangible assets), high profit-revenue, high stock price and low profit-net worth. 5.
The advertising agency correspond to E, firs because of the hint given for the company and second because the acc receivable and acc payable are almost equal both relatively high, also the plant-equipment assets are low. 6.
The computer software developer corresponds to F, due to the low inventory percentage showing it is a service. It also has low plant-equipment showing that this business is more of an office type. This company is one of the most profitable of the all 14 firms, which is usual for high-tech company. 7.
The health maintenance organization corresponds to G, because of having low plant-equipment and no inventory and accounts receivable are very high. Also revenue per assets is high which is typical for a medicine company. 8.
The restaurant chain corresponds to H, due to the very high inventory turnover, typical for a restaurant. The plant-equipment assets are high and the accounts receivable are low, because in this business the...
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