Problem: Please help me figure out how to match each of the given 5 balance sheets to the following industries:
- Electric utility
- Japanese trading company
- Aerospace manufacturer
- Automobile manufacturer
- Supermarket chain
Please tell me what numbers to look for, and why, to determine the industry. I know it's subjective, but this is just for me to get a general understanding of the differences between the industries and how they are reflected on the balance sheets.
|
A |
B |
C |
D |
E |
| Balance Sheet Percentages |
|
|
|
|
|
| Cash |
7.60% |
2.70% |
1.40% |
7.20% |
12.70% |
| Receivables |
31.7 |
4.7 |
2.9 |
60.3 |
11.5 |
| Inventories |
5.3 |
2.0 |
23.0 |
8.7 |
48.1 |
| Other current assets |
1.2 |
3.0 |
1.8 |
7.3 |
0.0 |
| Property and equipment (net) |
30.2 |
66.6 |
49.9 |
4.3 |
25.0 |
| Other assets |
24.0 |
21.0 |
21.0 |
12.2 |
2.7 |
| Total assets |
100.00% |
100.00% |
100.00% |
100.00% |
100.00% |
|
|
|
|
|
|
| Notes payable |
38.40% |
4.20% |
4.60% |
50.80% |
0.90% |
| Accounts payable |
5.5 |
3.0 |
20.0 |
15.2 |
21.5 |
| Other current liabilities |
1.5 |
4.7 |
12.7 |
5.7 |
27.4 |
| Long-term debt |
17.4 |
30.0 |
37.5 |
22.7 |
8.1 |
| Other liabilities |
26.5 |
22.9 |
9.8 |
1.3 |
8.1 |
| Owners' equity |
10.7 |
35.2 |
15.4 |
4.3 |
34.0 |
| Total liabilities and equity |
100.00% |
100.00% |
100.00% |
100.00% |
100.00% |
|
|
|
|
|
|
| Selected Ratios |
|
|
|
|
|
| Net profits/net sales |
.04 |
.14 |
.02 |
.01 |
.05 |
| Net profits/total assets |
.03 |
.05 |
.06 |
.01 |
.03 |
| Net profits/owners' equity |
.29 |
.14 |
.41 |
.13 |
.10 |
| Net sales/total assets |
.78 |
.36 |
3.2 |
2.1 |
.67 |
| Collection period (days) |
149 |
48 |
3 |
106 |
63 |
| Inventory turnover |
11 |
10 |
10 |
23 |
1.1 |
| Total liabilities/total assets |
.89 |
.65 |
.85 |
.96 |
.66 |
| Long-term debt/owners equity |
1.6 |
.85 |
2.4 |
5.3 |
.24 |
| Current assets/current liabilities |
1.0 |
1.0 |
0.8 |
1.0 |
1.4 |
| Quick ratio |
.9 |
.9 |
.2 |
.9 |
.5 |