Accouting Financial Reporting and Analysis (For Prof. Tommy)

Company No.

Code

Industry

Rationale

6

A

Airline

Airlines have a heavy investment in Property, Plants & Equipment.

9

B

Bank

They have no inventories and high receivables due to loans. The accounts payable is also high based on customer requests for various funds, which aligns with their high liabilities.

8

C

Brewery

Inventory turnover is short and fast due to consumption of various brews. Meanwhile days in inventory is extremely high as original brews are kept on tap.

10

D

Department Store

High inventory due to size.

5

E

Discount Retailer

High inventory but low in comparison to the department store due to their market and size. They also have the lowest cash assets due to discounted rates.

12

F

Fast Food Retailer/Franchiser

High inventory turnover with a large investment in Property, Plants & Equipment.

4

G

Food Products Manufacturer

High inventory turnover although not comparable to that of a fast food retailer.

1

H

Insurance Co.

They have no inventory but they have high liabilities, they know the risk but the timeline is unknown.

11

I

Internet Retailer

High inventory and high intangible assets, an additional tell-tale is the extremely high receivable turnover.

3

J

Internet Service Provider

No inventory and great investment in Property, Plants & Equipment assets.

7

K

Oil Company

Low inventory turnover but they have a legitimate investment in Property, Plants & Equipment.

2

L

Pharmaceutical Manufacturer

Low inventory turnover and intangible assets.

14

M

Securities Brokerage

There is no inventory but their liquidity ratios are very liquid.

13

N

Software Manufacturer

They had no inventory but high intangible assets.