Dun & Bradstreet and Robert Morris Associates compile financial information about many companies. They provide, among other information, income statements and balance sheets for an average firm in an industry.
Go to a library, look up financial information on two industries of your choice, and compute the following data for each industry:
a. The percentages of assets in (1) current assets and (2) fixed assets (plant and equipment)
b. The percentages of financing from (1) spontaneous financing and (2) internal equity
c. The cost of goods sold and the operating expenses as percentages of sales
d. The total assets as a percentage of sales Given your findings, how would you summarize the differences between the two industries?