The Case of the Unidentified Industries

THE CASE OF THE UNIDENTIFIED INDUSTRIES 1. Basic chemical manufacture 2. Electric and gas utility 3. Supermaket chain 4. Meat packer  5. Retail jewlry chain (which generaly leased its stores properties) 6. Automobile manufacturer. manufacturer. 7. Advertising agecy 8. Amajor U.S airline 9. A large regional comercial bank (fitted into the most nearly comparable balance sheet and ratio categories of the non-financial companies) 10. A large public accounting firm in fiscal 1980 (which accures the estimated billable amounts for work rendered but not yet billed) 11. A department store chain which largely owns its stores 12. A hotel chain 13. An aircraft manufacturer 

A

B

C

D

E

F

G

H

I

Cash and marketable securities  Account receivables Inventories Other current assets Plant and equipment (net) Other assets Total assets

3.9 66.6 0 10.2 708 11.5 100

5.6 4.1 34.8 5.5 47.2 2.8 100

3.9 6.7 59.8 0.5 23.5 5.5 100

7.1 10.8 18.8 3.4 46.2 13.8 100

21.8 28.3 0 26.4 23.5 0 100

1.4 29.9

0.2 4.2 1.8 4 86.6 3.1 100

0.9

0.8 21.4 7.6 100

45.7 46.6 0 0 1 6.6 100

Notes payable  Accounts payable  Accrued taxes Other current liabilities Long-term debt Other liabilities Preferred stock Capital stock and capital surplus Retained earnings and surplus Reserves Total liabilities and stockholder equity

3.4 54.4 0 14.8 0.9 2.1 0 2.6 21.8 100

1.7 22.3 3.6 9.2 19.7 11.6 1. 1.8 6 24 100

2.1 33.9 6.8 4.4 4.1 11.6 0 10.9 26.1 100

10.3 18.8 1.7 16.6 10.7 14.1 0 3.5 24.2 100

5.2 5.4 2 17.5 18.3 0 0 44.8 6.8 100

4 0 5.4 87 8.8 0 6 0 19.7 5.8 2.2 1.3 0 . 18.8 1.5 35 4.4 100 100

1.11 0.97 0 47 1

1.36 0.27 9.5 35

1.5 0.22 1.9 20 2

0.84 0.38 7.9 23 4

2.54 1.66 0 49 7

2.92 1.29 2.1 88 3

J

K

L

M

Balance Sheet Percentages

SELECTED RATIOS Current assets/current liabilities Cash, marketable securities and receivable/current receivable/current liabilities Inventory Turnover (x) Receivables collection period (days)

39

1.06 1.06 0 0

16.7 27.1 1.3 47 7 100

1.7 12 0 4.7 80.6 1 100

1.5 17.2 14.8 0 50.5 15.9 100

4.7 16.3 19.5 0.9 56.6 2 100

4.4 8.1 4.3 1.7 72.4 9.1 100

3.6 3.7 0.8 3.4 36.2 8.5 9.5 21.4 12.9 100

1.2 12.1 7.8 5.1 25.7 4 8.3 3.7 32.1 100

10.5 5.7 0.7 11.1 13.6 19.8 0 7.5 31 100

2.3 8.9 1 6.7 29.7 8.7 0 8.7 34 100

0.1 10.1 1.7 15.3 18.1 4.5 0 2.4 47.8 100

1.8 8.9 0 10.1 39.3 14.9 0 8 17 100

0.89 0.38 21.3 34 1

1.75 0.66 0.67 0.49 5.2 0 32 4 32 1

1.77 0.99 5.3 69 9

1.52 0.77 12.8 20 4

0.89 0.6 0 24