Question

Each balance sheet is of one of the following companies:Macy’s,Exxon, Mobil ,Suntrust Bank ,Netflix, andSeattle Genetics For each balance sheet, which company do you think it is and why: You can save the picture to zoom and see it better

Balance Sheet 1: Why:

Balance Sheet 2: Why:

Balance Sheet 3:

Why:Balance Sheet 4: Why:

CONDENSED CONSOLIDATED BALANCE SHEET Jene , Dee. Current assets Notes and accounts receivable net 11,135 4,170 1544 2,180 curront assets Investments, advances and long-term receivable Property plant and equipment- Other assets, including intangibles net 252.987 31,100 2,664 31.193 2615 Accounts payable and accrued liabilities Total current liabilities Long-term debe 24,750 20,778 Long-term obligations to equity companies Commitments and contingencies (Note 3 Equity Common stock without par value 4,617 08,768 (1R,902) (9.000 million shares authorized, 8,019 million shares issued) Accumulated other comprehensive income Common stock held in treasury (3,782 million shares at June 30, 2017 and 3,871 million shares at December 31,2016) 225,305) shane of equity 6,505 Total liabilities and equity
Balance Sheet 5: Why:

Answer 1

I have identified the companies based on the clues I could see. The answer is provided in the same sequence as I identified them. Please rearrange the sequence to suit your requirement.

Balance Sheet 5 belongs to Suntrust Bank.

Reasons:

1. On the liabilities side it has interest bearing deposits and non interest bearing deposits. Only a bank can have such types of large deposits as liabilities.
2. Liabilities to equity ratio is very high. Only banks have such a high leverage ratio.
3. Presence of high quantum of loans on the assets side. Only a bank will have such a high quantum of loans on asset side.

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Balance sheet 3 belongs to Netflix.

Reasons:

1. Present of current content assets in the current asset on asset side - only Netflix amongst the entire lot can have a content asset on its balance sheet, in line with its business model of providing online content.
2. Presence of non current content asset on the asset side of the balance sheet - only a content streaming company can have this item on its balance sheet.
3. Property, plant and equipment as a %age of total asset is very low. Only a video streaming company with business model of being online can survive with such a low proportion of asset towards fixed assets.

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Balance sheet 2 belongs to Macy's

Reasons:

1. Macy's Inc is a retailer. This is the only company that will have merchandise inventory in the current asset on asset side of the balance sheet.
2. Only a retailer can have merchandise accounts payables in the current liabilities on the liabilities side of the balance sheet.

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Balance sheet 4 belongs to Seattle Genetics

Reasons:

1. The company is a biotechnology company engaged into research and development. Only a company of this type will have massive expenditure towards research and development without matching revenues, thus translating into accumulated deficits. On the equity side of the balance sheet, the balance sheet shows a massive accumulated deficit that can be characteristic of a company involved in R&D only.

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Balance sheet 1 belongs to Exxon Mobil.

Reasons:

1. By elimination, this is the only match pending.
2. Presence of higher proportion of inventory on the current asset side - characteristics of a company involved in oil & gas business
3. Presence of high net receivables on the current asset side
4. Size of the balance sheet is massive - reflection of a business conglomerate present across multiple businesses
5. Very high proportion of total asset towards property & equipment or fixed assets