Finman 101 The Case of Unidentified Industries Week1 Module 1 PDF

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Case of unidentified industries...

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1. L - Aircraft manufacturer. The inventory will carry the highest value because aircraft manufacturer contains inventory that are high in value such as aircraft engines, etc. 2. K – Airline. This is just a service sector where it would have a high value of assets but has the least value of inventory. 3. F - Bookstore chain. The sector’s inventory and fixed assets are equally high in value, short receivable collection period and high asset turnover with low profit margins. 4. I - Commercial bank. It projects the highest value of receivables among the sectors. 5. E - Computer software developer. This sector does not need any fixed assets and inventories with high value. It also has a high value of other assets. 6. G - Departmental store chain. Assets and inventories in this sector are high in value than its receivables. 7. D - Electric and gas utility. This sector has no inventories, high value of P&E and long AR collections. 8. H - IT hardware and service provider. It has a high value of fixed assets and no inventories whatsoever. 9. C - Online retailer. Low inventory with a high turnover, short receivable collection period, low P&E and high asset turnover with low profit margins. This is because online retailer such as Lazada does not have any inventories at all. 10. B - Parcel delivery service. It has a high value of PPE and no inventories. 2GO and other delivery services own delivery trucks and vans which are not considered as inventories because they do not sell those said assets. 11. A - Pharmaceutical company. Assets, inventories, and receivables are amounted proportionately. It has a low inventory turnover and long receivable collection period.

12. M - Retail Grocery chain. This sector has high inventory, large P&E, short AR collection period 13. N - Software service provider. This sector has a low inventory, low P&E, high value in other assets high asset turnover with low profit margins since it provides services that are software. 14. J - Social networking service. No inventories but there are high value receivables and other assets. It also has a very long receivable collection.

LIST OF COMPANIES A – Pharmaceutical Company (Gilead

H – IT Hardware and software provider (IBM)

Sciences Inc.) B – Parcel Delivery Service (FedEx)

I – Commercial Bank (US Bank Corp.)

C – Online Retailer (Amazon)

J – Social Networking Service (Facebook)

D – Electric and gas utility (Pacific Gas &

K – Airline (Southwest Airline)

Electric) E – Computer Software Developer (Microsoft Corporation) F – Bookstore Chain (Barnes & Noble Inc.) G – Department store chain (Macy’s Inc.)

L – Aircraft Manufacturer (Boeing) M – Retail Grocery Chain (The Kroger Co.) N

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Software

(Salesforce.com)

service

provider...