THE CASE OF THE UNIDENTIFIED INDUSTRIES The analysis of the balance sheets and financial ratios enable us to match five different industries with respect to the corresponding financial structure reflected in the balance sheet. The low collection periods make B or E either one of GM retail, or apparel. That leaves Automobile, Electric Utility and Automated Test Equipment / Systems at A,C or D. Discounted general merchandise corresponds to B. The low collection periods make it one of B or
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tends to be high in this industry as there is heavy machinery in power plants used to convert natural gas into electricity/ transform energy into usable power. It happens to be 60% of total assets. Another figure that leads to our decision is long-term debt of 32%, which is quite high compared to other industries, which makes sense given their high plant and equipment percentage. This tells us most of their financing comes from borrowings, making this a highly leveraged industry. Also, their inventory
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Finance Theory II (Corporate Finance) Katharina Lewellen February 5, 2003 1 Today Preliminaries Introduction to the course Corporate finance Types of questions Course outline Course requirements Case of Unidentified Industries 2 Preliminaries Texts − Brealey & Myers, Principles of Corporate Finance, 7th edition − Higgins, Analysis for Financial Management, 7th edition − Case and Readings Packet Professor − Katharina Lewellen 3 Introduction Corporate finance Investment
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The Case of the Unidentified Industries Financial Accounting & Management MBA 623 Sandra Martin Professor Christian C. Senk, Esq May 15, 2014 The online book seller goes with firm A, There is a high inventory turnover, along with keeping low inventory. Firm A also has a lot of cash and long term debt. The collection period is on the low side, on the other hand the online book store has a high accounts payable because it has to borrow a lot of money to pay for their inventory. The
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Natalie Trivino May 21, 2016 Current Trends in Leadership Reflective Journal Week 3 As of now, I just finished reading the chapter called, “Toffees, Tennis Balls, and the Buddhas of Swat”, in the book “I am Malala”. The book is getting into greater detail of how the Taliban gained its power and the effects to the people in the villages. It all started by listening to a guy in the radio during certain times of the day. He was known as the Mullah and he started stating his beliefs of what is good
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Environmental assessment of bio-based polymers and natural fibres Dr. Martin Patel*), Dr. Catia Bastioli**), Dr. Luigi Marini**), Dipl.-Geoökol. Eduard Würdinger***) *) Utrecht University, Department of Science, Technology and Society (STS), Copernicus Institute, Padualaan 14, NL-3584 CH Utrecht, Netherlands; Phone: +31 30 253 7634; Fax: +31 30 253 7601; E-mail: m.patel@chem.uu.nl **) Novamont, Via Fauser 8, I-28100 Novara, Italy; Phone: +39 0321 699 611; Fax: +39 0321 699 600; E-mail:
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the Unidentified Industries—2006 Educational material supplied by The Case Centre Copyright encoded A76HM-JUJ9K-PJMN9I Order reference F265469 If you were asked to visualize (in income statement and balance sheet form) the financial structure of a typical firm in one particular industry, do you think you could do it? How close to your “vision” do you think the “reality” would be? What if you were asked to do the same experiment covering 14 firms drawn from 14 different industries? How
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1. Advertising Agency – E We believe the matching industry is Company E. As a service firm it does not containinventory. It will also have zero inventory turnover. Through research we learned that the media purchase is made on behalf of the client which means that the accounts receivable and accounts payable would be roughly equal to one another. In addition, the receivable collection period(RCP) is greater than 30 days which is common in business to business firms. Also, the firm hasa low
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A – Online Book Seller A would be the online book store because it has high inventories and low account recievables. An online bookstore E - Advertising agency The letter E has been assigned to the ad agency. It does not have an inventory hence there is no inventory turnover ratio. F- Computer Software Developer F is the computer software developer because it has low inventories, low plants and equipment G - Commercial Bank G is a commercial bank because I has no inventory. Along with that
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| The Case of the Unidentified Industries-2006 | | In this case, a summary sheet which contains 14 sets of financial data from 14 different industries is provided. The task is to match 14 different firms with 14 industries by distinguishing the differences (e.g. sources of financing, profitability, the inventory turnover and the accounts receivable collection period) in the financial structures. 1. Advertising agency: the matching industry is E. As a service firm, it does not contain
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