The Following Selected Financial Data Pertain to Four Companies: a Hotel,a

question 22

Essay

The following selected financial data pertain to four companies: a hotel,a travel agency,a meat packing company and a pharmaceutical company.
Required: Match each with the financial information and explain why you made your choice as you did.
$\begin{array}{l|c|c|c|c}\hline \begin{array}{l}\text { Balance Sheet Data } \\\text { (component percentages) }\end{array} & \begin{array}{c}\text { Company } \\1\end{array} & \begin{array}{c}\text { Company } \\2\end{array} & \begin{array}{c}\text { Company } \\3\end{array} & \begin{array}{c}\text { Company } \\\mathbf{4}\end{array} \\\hline \text { Cash } & 7.2 & 22.0 & 6.0 & 11.2 \\\hline \text { Accounts Receivable } & 28.0 & 40.0 & 3.4 & 23.0 \\\hline \text { Inventory } & 21.4 & 0.5 & 0.9 & 27.4 \\\hline \text { Property, Plant \& Equipment } & 32.0 & 19.0 & 75.1 & 25.0 \\\hline \begin{array}{l}\text { Income Statement Data } \\\text { (component percentages) }\end{array} & & & & \\\hline \begin{array}{l}\text { Gross Profit }\end{array} & 15.2 & \begin{array}{c}\text { Not } \\\text { Applicable }\end{array} & \begin{array}{c}\text { Not } \\\text { Applicable }\end{array} & 44.0 \\\hline \text { Profit before Taxes } & 1.8 & 3.3 & 2.5 & 7.0 \\\hline & & & & \\\hline \text { Ratios } & & & & \\\hline \begin{array}{l}\text { Current ratio (over the last } \\\text { five years) }\end{array} & 1.6 & 1.3 & 0.5 & 1.8 \\\hline \begin{array}{l}\text { Inventory turnover ratio }\end{array} & 27.8 & \begin{array}{c}\text { Not } \\\text { Applicable }\end{array} & \begin{array}{c}\text { Npplicable }\end{array} & 3.4 \\\hline \text { Debt-to-equity ratio } & 1.8 & 2.3 & 5.8 & 1.4 \\\hline\end{array}$