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Unidentified Industries
Use the following information to answer the next two questions.
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Order Paper NowCompany A | Company B | Company C | |
---|---|---|---|
Assets | |||
Cash and marketable securities | 45% | 7% | 12% |
Accounts receivable | 8 | 8 | 6 |
Inventories | 0 | 12 | 2 |
Other current assets | 0 | 16 | 5 |
Plant & equipment (net) | 17 | 15 | 60 |
Other assets | 27 | 42 | 15 |
Total assets | 100% | 100% | 100% |
Liabilities and Net Worth | |||
Accounts payable | 2% | 7% | 2% |
Accrued items | 3 | 5 | 15 |
Other current liabilities | 11 | 23 | 12 |
Long-term debt | 16 | 11 | 30 |
Other liabilities | 3 | 35 | 11 |
Preferred stock | 0 | 0 | 0 |
Common stock | 65 | 19 | 29 |
Total liabilities and net worth | 100% | 100% | 100% |
Selected Financial Data | |||
Current assets/current liabilities | 3.5 | 1.2 | 0.8 |
Cash, MS and ARs/current liabilities | 3.3 | 0.8 | 0.6 |
Inventory turnover (X) | NA | 2.9 | 87.3 |
Receivables collection period (days) | 53.8 | 63.1 | 5.4 |
Total debt/total assets | 0.189 | 0.457 | 0.413 |
Long-term debt/capitalization | 0.195 | 0.447 | 0.493 |
Revenue/total assets | 0.47 | 0.50 | 2.11 |
Net profit/revenue | -0.064 | 0.021 | 0.053 |
Net profit/total assets | -0.007 | 0.02 | 0.117 |
Total assets/net worth | 1.55 | 5.12 | 3.45 |
Net profit/net worth | -0.049 | 0.055 | 0.277 |
EBIT/interest expense | NA | 4.8 | 37.5 |
EBITDA/revenue | 0.115 | 0.135 | 0.141 |
1. The preceding table gives balance sheet percentages and selected financial data for three companies in very different industries – food and beverage, manufacturing, and social networking. Make three observations in each section – Assets, Liabilities and Net Worth, and Selected Financial Data – that you think are interesting. Describe what you think is going on.
REMEMBER:Each question in the Capstone must be answered in order. Once you click “Submit” to move to the next question, your answer is final and cannot be changed.