Real World Case Identifying companies based on financial statement information
Presented here is selected information from the 2005 fiscal year 10 K reports of four companies. The four companies, in alphabetical order, are Caterpillar, Inc., a manufacturer of heavy machinery; Oracle Corporation, a company that develops software; Starbucks, a company that sells coffee products; and Tiffany & Company, a company that operates high end jewelry and department stores. The data for the companies, presented in the order of the amount of their sales in millions of dollars, follow.
|
A |
B |
C |
D |
|
|
Sales |
$2,395 |
$6,369 |
$11,799 |
$36,339 |
|
Cost of Goods Sold |
1,052 |
2,605 |
2,651 |
26,558 |
|
Net Earnings |
255 |
495 |
2,886 |
2,854 |
|
Inventory |
1,060 |
546 |
0 |
5,224 |
|
Accounts Receivable |
142 |
191 |
2,900 |
13,968 |
|
Total Assets |
$2,777 |
$3,514 |
$20,687 |
$47,069 |
Required
Based on these financial data and your knowledge and assumptions about the nature of the businesses that the companies operate, determine which data relate to which companies. Write a memorandum explaining your decisions. Include a discussion of which ratios you used in your analysis, and show the computations of these ratios in your memorandum.