Identify the Industries 8-28-11 (11pm)

Identify the Industries 8-28-11 (11pm) - Identify the...

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Identify the Industries Case Analysis
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Introduction: In this case analysis, “Identify the Industries”, the AUMBAS are to determine which of the 12 firms presented below belong to the common-sized balance sheets found in Exhibit 1. Financial statement dates are noted at the top of each column. The AUMBAS have to determine each business operation by examining ratios, common-sized statements, and the knowledge we have of these business operations in the marketplace. The 12 firms represented are: 1. Regional Bank 2. Temporary office personnel agency 3. For-Profit hospital chain 4. Warehouse club 5. Major passenger airline 6. Major regional utility company 7. Manufacturer of oral, personal, and household products 8. Hotel chain 9. Upscale department store 10. Discount department store 11. International oil company 12. Defense contractor The AUMBAS separated these industries into the following four categories: 1. Manufacturing a. Defense contractor
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b. Manufacturer of oral, personal, and household products 2. Merchandising a. Warehouse club b. Upscale department store c. Discount department store 3. Service a. Regional bank b. Temporary office personnel agency c. For-profit hospital chain d. Major passenger airline e. Hotel chain 4. Other a. Major regional utility company b. International oil company
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Manufacturing: Defense Contractor: (I) A Defense Contractor would have little to none Cash and Marketable Securities since most of their assets are in the service category. There would be no inventories at (1.8%), but the plant and equipment would be high at (81.9) due to the equipment being used. Preferred stock would be at high at (5.9), with a low common stock at (1.2). Due to the used equipment there would be low inventory turn (2.6). Due to the potential size of contracted jobs the receivable collection period would be over 30 days at (49%). Manufacturer of oral, personal, and household products: (C)
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This note was uploaded on 01/11/2012 for the course ACCT 522 taught by Professor Moore during the Spring '11 term at Averett Unversity.

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Identify the Industries 8-28-11 (11pm) - Identify the...

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