Problem

Using Financial Information to Identify Mystery CompaniesThe selected financial data on th...

Using Financial Information to Identify Mystery Companies

The selected financial data on the following page pertain to four unidentified companies:

 

 

COMPANIES

 

1

2

3

4

Balance Sheet Data

 

 

 

 

(component percentage)

 

 

 

 

Cash

11.6

6.6

5.4

7.1

Accounts receivable

4.6

18.9

8.8

35.6

Inventory

7.0

45.8

65.7

26.0

Property and equipment

56.0

20.3

10.1

21.9

Income Statement Data

 

 

 

 

(component percentage)

 

 

 

 

Gross profit

56.7

36.4

14.1

15.8

Profit before taxes

2.7

1.4

1.1

0.9

Selected Ratios

 

 

 

 

Current ratio

0.7

2.1

1.2

1.3

Inventory turnover ratio

30.0

3.5

5.6

16.7

Debt-to-equity ratio

3.3

1.8

3.8

3.1

This financial information pertains to the following companies:

a. Full-line department store


b. Wholesale fish company


c. Automobile dealer (both new and used cars)


d. Restaurant

Required:

Match each company with its financial information.

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