Problem

Using Financial Information to Identify Mystery CompaniesThe following selected financial...

Using Financial Information to Identify Mystery Companies

The following selected financial data pertain to four unidentified companies:

 

COMPANIES

 

1

2

3

4

Balance Sheet Data

 

 

 

 

(component percentage)

 

 

 

 

Cash

3.5

4.7

8.2

11.7

Accounts receivable

16.9

28.9

16.8

51.9

Inventory

46.8

35.6

57.3

4.8

Property and equipment

18.3

21.7

7.6

18.7

Income Statement Data

 

 

 

 

(component percentage)

 

 

 

 

Gross profit

22.0

22.5

44.8

N/A*

Profit before taxes

2.1

0.7

1.2

3.2

Selected Ratios

 

 

 

 

Current ratio

1.3

1.5

1.6

1.2

Inventory turnover ratio

3.6

9.8

1.5

N/A

Debt-to-equity ratio

2.6

2.6

3.2

3.2

*N/A = Not applicable

 

 

 

 

This financial information pertains to the following companies:

a. Retail fur store


b. Advertising agency


c. Wholesale candy company


d. Car manufacturer

Required:

Match each company with its financial information.

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