The Case of The Unidentified Industries - 1995
The Case of The Unidentified Industries - 1995
The Case of The Unidentified Industries - 1995
Muhammad Nauman
Section D
The financial structure of firm (A) shows that it has zero inventory turnover
and high receivables collection period. Banks usually has a large amount of
receivables because they lend money to individual and company due to
which the average number of days, which in this case is very high, its
financial structure also show that firm has borrow money from outside to pay
the debts to its customers.
The financial structure of firm (D) shows that a store department has
borrowed 38% money to finance inventory and give credit terms to its
customers. The financial structure also shows large plant and equipment of
55% and inventories of 24%.
The financial structure of firm (I) shows that inventory turnover is very high
which 47% is for a meat packer which makes sense. The financial also shows
that its accounts receivable is 28% which can be collected in one week, and
also huge plant and equipment which makes sense.
The financial structure of firm (E) shows that it has more inventories than
other forms which is 43% which makes sense for such firm. It also shows that
it has zero debt ratio, and large plant and equipment percentage 37%.
Firm B Advertising Agency:
The financial structure of firm (B) shows that it has zero inventory turnovers
because it is advertising agency which provides services not production of
any product. It has high account receivable which is 55% and low plant and
equipment.
Firm F Airline:
The financial structure of firm (F) shows that it has zero inventory turnovers
because it provides services not production of any product.it also shows that
it has huge percentage of plant and equipment which is 71%. The firm has
financed by long term debt which is 40%.
The financial structure of firm (F) shows that it has zero inventory turnovers
because it provides services not production of any product. It also shows it
has high return of cash and marketable securities which is 77%.
The financial structure of firm (C) shows it has low inventory turnovers
because it provides services not any production.it has large percentage of
plant and equipment which is 77%. It has 81% of its revenue from electricity
sales.
The financial structure of firm (G) shows that it has large percentage of
inventories, current assets, plant and equipment and long term debt.
The financial structure of firm (J) shows that it has zero debt ratio and low
inventory turnovers which is 2% and high cash and marketable securities
which is 67%.
The firm structure of firm (k) shows that it has high net sales, net profit, and
plant and equipment. It has high cash and marketable securities, account
receivable and inventories.