...UV1765 RATIOS TELL A STORY—2005 Financial results vary between companies for a number of reasons. One reason for the variation can be traced to the characteristics of the industries in which the companies operate. For example, some industries require large investments in property, plant, and equipment, while others require very little. In some industries, the product-pricing structure allows companies to earn significant profits per sales dollar, while in other industries the product-pricing structure imposes a much lower profit margin. In most low-margin industries, however, companies often experience a relatively high volume of product throughput in their businesses. A number of industries are also characterized by lenient credit terms, while others sell for cash only. A second reason for some of the variation in financial results between companies is the result of management policy. Some companies reduce their manufacturing capacity to match more closely their immediate sales prospects, while others carry excess capacity to be prepared for future expansion. Also, some companies finance their assets with borrowed funds, while others avoid that leverage and finance their assets with owners’ equity. Of course, one other reason for some of the variation in reported results between companies is the differing competencies of management. Given the same industry characteristics and the same management policies, different companies may report different financial...
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...UV1765 RATIOS TELL A STORY—2005 Financial results vary between companies for a number of reasons. One reason for the variation can be traced to the characteristics of the industries in which the companies operate. For example, some industries require large investments in property, plant, and equipment, while others require very little. In some industries, the product-pricing structure allows companies to earn significant profits per sales dollar, while in other industries the product-pricing structure imposes a much lower profit margin. In most low-margin industries, however, companies often experience a relatively high volume of product throughput in their businesses. A number of industries are also characterized by lenient credit terms, while others sell for cash only. A second reason for some of the variation in financial results between companies is the result of management policy. Some companies reduce their manufacturing capacity to match more closely their immediate sales prospects, while others carry excess capacity to be prepared for future expansion. Also, some companies finance their assets with borrowed funds, while others avoid that leverage and finance their assets with owners’ equity. Of course, one other reason for some of the variation in reported results between companies is the differing competencies of management. Given the same industry characteristics and the same management policies, different companies may report different financial results simply because...
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...2 is a Computer software development industry due to high R&D cost and inventory turnover is NA.Since in a Sofware development industry R&D is high this satisfies it. 12 is a fast food industry as Inventory turnover is high as well as ROE and ROA which suggests that Assets is low.Since Fast foods have typically have high turnover to prevent spoilage No 12 satisfies it. Since only 2,7,8,9, have R&D cost they must be between Pharmaceutical ,railroad,Electrical Utlility and Software development respectively. Since in Wireless Communications Industry typically bills are paid on a monthly basis which means it must have receivable collection of around 30 days. No 5 satisfies it. It also doesn't have R&D cost and Inventory Turnover. No 10 is a grocery as the average inventory turnover for grocery is around 25.Also it R&D cost is N/A No 8 is a Pharma industry as it has high gross margin and R&D. It also has high ROS and ROA respectively .Pharma Industry has high R&D as profits earned on Sales is high. Internet Retailing has to be between 1 and 6 as their receivable collection is generally low.Since 1 has better inventory turnover than 6 ,1 has to be Internet Retailing. 7 has to be a Electrical Utility as it normally has less R&D involved than Software Development and Pharmaceutical respectively.This leaves us with railroad for 9 as it has huge assets so it will have less Asset turnover when compare to electrical utility. No 11 is Commercial banking...
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...Baikang Yuan Professor Gary Osmond FINA 3301 Section 07 Assignment: Ratios Tell A Story 09/24/2015 Ratios Tell A Story Commercial banking, tax preparation and diversified financial services, and computer software development are three industries that have no inventory. So they match No.2, No.4 and No.11. Since developing computer software needs more development expense, No.2 has the highest research and development expense ratio, thus it matches computer software development. Commercial banking has a lot of loans and deposits. No.11 has the highest account receivable and the highest current liabilities so that it matches commercial banking. Then, No.4 matches tax preparation and diversified financial services. Wholesale food distribution has high inventory and its ROS&ROA should be lower than other industries. No.10 matches it best because it has the highest inventory and very low ROS and ROA. Pharmaceutical needs very high research and development expense. Also, we know that pharmacy is a really high-profit business, so its ROS should be very high. No.9 matches it because it has the highest research and development ratio and the highest ROS. Electric utility needs a great number of equipment. No.5 matches it because it has the highest net property, plant and equipment. No.12 matches computer and office equipment production and servicing because it has the second highest net property, plant and equipment. No.6 matches supermarket chain because it has the...
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...D O N O T C O PY Balance Sheet Detective 05/2011-5791 This case was written by Elizabeth Demers, Assistant Professor of Accounting and Control at INSEAD. It is intended to be used as a basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. Copyright © 2011 INSEAD TO ORDER COPIES OF INSEAD CASES, SEE DETAILS ON THE BACK COVER. COPIES MAY NOT BE MADE WITHOUT PERMISSION. NO PART OF THIS PUBLICATION MAY BE COPIED, STORED, TRANSMITTED, REPRODUCED OR DISTRIBUTED IN ANY FORM OR MEDIUM WHATSOEVER WITHOUT THE PERMISSION OF THE COPYRIGHT OWNER. Exhibit 1 shows the common-size, fiscal year 2005 balance sheets of 9 companies operating in different industries and headquartered in various countries, as described below. Use your economic intuition and the financial information cues provided in the common-size balance sheets to match the companies and industries described below with those depicted in the exhibit. O PY EDF (France) Electricité de France (EDF) is a large French utility company that was recently privatized via an initial public offering. The company's principal activity is the generation, transmission, distribution, import and export of electricity and other forms of energy. The Group has operations in France, United Kingdom, Spain, Belgium, Switzerland, Germany, Poland, Italy, Slovakia, Hungary, US, Mexico, Morocco, China, Brazil, Ivory Coast, Laos, Vietnam...
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...MGMT301 Hyeonseok Kim 11175120 Roger Yu’s article in USA TODAY has five key concepts. BlackBerry hired a new CEO, Jim Basillie to pursue a new business strategy. The company, RIM (Research In Motion) makers of BlackBerry were at one time the leaders of the smartphone market. In 2011 BlackBerry owned 11.1% of the market, Apple had the second largest share with 18.2% of the market, and with Android leading at 49%. BlackBerry’s plans to launch the playbook two and the new operating system in the coming year. Despite their efforts to change the company, many expertises argue there is no room for a new operating system in the smartphone market, especially with the release of Microsoft’s Windows 7 phone. This article is related to our discussion about leadership in our class. The company, BlackBerry is receiving new leadership who faces the challenge of competing in the smartphone market. The announcement by Jim Balsillie, the new CEO of RIM is related with leadership, especially visionary leadership. The leader with a vision is better equipped to handle challenges they face. Although the new CEO of the company is not pushing forward to radically change the business he acknowledges their business is falling behind in smartphone competition and has a new plan to survive the challenge. Vision provides where to go and a great control over the...
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...Some industries have differences strategy about the product pricing, profit margin, and rate of product throughput, while in other industries adjust their capacity to match with company’s plan for future. The case also provides examples of company’s policy, some companies borrow fund, and others avoid that. That is reflected all in financial results. Analysis: Airline: 7 Automobile Manufacturing: 8 Pharmaceutical: 9 Commercial Banking: 11 Computer and office equipment manufacturing: 12 Discount general-merchandise retail: 13 Electric utility: 5 Fast Food: 1 Wholesale food distribution: 10 Supermarket: 6 Internet retail: 3 Specialized staffing services: 4 Software development: 2 I pick two industry with the highest R&D ratio are pharmaceutical and software development. The one with no inventory is software development as number 2 and pharmaceutical matches with number 9. Commercial banking matches number 11 because it will have the highest current liabilities as well as the receivables collection. I matched two industries with the same receivables collection is 23 are Internet retail and electric utility, and the industry has higher total current assets is Electric utility as number 5. So, internet retail matches with number 3. Fast food, Wholesale food distribution, and Supermarket are three of the industry has the lowest receivables collection. The industry with the highest current asset is super market and marked number 6. The second highest current...
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...At every party there is always that one person who happens to get out of hand. Whether he had too much to drink or is just likes to antagonize others, everyone seems to recognize that particular person and his faults. Well in Chaucer’s The Canterbury Tales that role is filled by the Miller. He is rude and disrespectful drunk who aggravates the rest of the pilgrims. Throughout Chaucer’s frame tell narrative, the Miller is never seen in a good light. He invokes crude humor into his tale which distinguishes it from all other tales. The Miller is a multifaceted character in this tale, who begets conflict on the pilgrimage to Canterbury. The Miller’s physical appearance deeply reflects his personality. His fiery red hair is much like his outlandish personality. Much like his hair, he is a very noticeable member of the pilgrimage, but unfortunately for all the wrong reasons. The Miller does not hold back in conversation and speaks his mind to the point of cruelty. He has a brawny physic that parallels to his intense and over-bearing persona. The Miller overwhelms conversations and stories told throughout the pilgrimage. He consistently interrupts others and takes advantage of those not willing to stand up to him. An obscene wart on his nose with red hairs protruding out of it, demonstrates the Miller’s human characteristic of annoyance. His wart was so repugnant that one could not stop staring at it. His personality has connection to this thought by the way that the Miller was so...
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...a dear and very close friend of mine and her name is Mrs. Roxanna Hanna. She's like a mother/big sister to me. What’s so ironic is that there were people that saw what had happened to her, but because of that era and time nothing was done to the perpetrator. After years of counseling with God she got the courage to put that experience down on paper (because it was REAL and IT did happen). She now counsels children about being safe and not being afraid to talk about life experiences to a safe adult. Roxanna was also able to counsel one of the women that got away from the convicted serial killer in Cleveland named Anthony Sowell. It's sad what she endured, but it would have been even sadder if there was no one to tell her story. She was able to tell her own story. And through telling her story someone heard of her and told someone and then that someone told someone and...
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...come again to fight, but i reassured him that they won’t be able to take me down. As I was saying this Merlyn started shoving his beard into his mouth and I knew that something I said was bothering him. Right as he was about to speak he smiles and there was a piece of white beard hair in his teeth. I tried my best not to laugh but a little chuckle was forced out of me. I ask him what’s wrong but all he says is, “I suppose you will learn someday”(222). I always have and always will hate it when Merlyn says that, I just wish that he would tell what is wrong. It would make my life and his life much easier! After I get Merlyn to speak he tells me that I will eventually have to learn to think for myself when he is gone. He then starts to talk about a girl named Nimue who he will fall in love with, but I don’t really think that that girl will fall in love with Merlyn because he is not really what girls would call a “handsome man.” Anyway, he tell me that Nimue will learn his spells and then lock him up in a cave for several centuries. After a while Merlyn finally gets to his point, he wants me to think about Might is Right and come up with a conclusion and a plan. I dislike the fact that I actually have to think now that I am a monarch. As we are about to leave the top of the castle I pick up a small stone and ask Merlyn what he thinks would happen if I drop the stone on a guys head right bellow us. Merlyn, being the geek that he is, says that it would kill him and shatter his...
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...A plot of a story is the order of events that have been chosen by the author to catch the reader’s attention. The author choses a certain order in which to tell the story to introduce characters in certain order along with suspense and surprise. It shows how certain events in the story are related, how they connect and who they connect with. Telling a story in chronological order does not add the element of keeping the readers mind into the story because it does not give the reader any questions to think about as they are reading. The plot of the story “Sonny’s Blue’s”, it is clear that the author starts the story in the middle of the events. He shows the story through the eyes of the brother of Sonny finding out his brother had been arrested for drug use. He then flashes back to their childhood because of the sound of the children outside while he is in his classroom thinking about what he had read in the newspaper. He looks back to their childhood, the conversation he had with his mother after their father died about being a father role in Sonny’s life. Though he neglected the conversation he had with his mother and proceeded to get married and join the army days later. It was until his mother died that he had to return home and sit with Sonny in their house talking about their lives and how different they were. They were two separate people and had very different lives. They fought and disagreed on many things such as Sonny’s dreams. The brother had to go back to...
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...adults that commit suicide have already been dead long before the bullet pierces the skull. Their brain has started to run on auto-pilot and they don't actually think for themselves. Unfortunately, on September 12, 2008, Wallace has had the personal experience of suicide as well. His wife had come home and found that her husband had hung himself. Perhaps he personally knew what the suicides were thinking before killing themselves. On a brighter note, Wallace does a great job of telling stories in his speech; stories that the audience could relate too. By audience, I do not just mean the students. There were parents, family, and friends there as well, who were real, working adults that knew what life was after school. One story he tells talks about an average day of an adult life, waking up, going to work, and than being tired at the end of the day, only to find out you have no food to eat! The bulk of the story talks about going to the grocery store frustrated and...
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...overcome his fear he keeps asking questions about life and people’s presence in the world. The oil painting, Interior with Woman and Child, on picture 1 by Paul Mathey from 1890 could be an illustration of David – a sad, alone boy who don’t feel secure. Who just stands waiting for the next thing to happen? Mrs. Redmond is taking care of him. David feels safe when he is near her: “Often, when Mary went down to the cottage to collect him, he did not want to come home. But then, once he was back in his own house, he would start to smile again and follow her around asking her questions or, when he was older, telling her what had happened to him at school”[1]. You can tell that he is secure when he is with Mrs. Redmond because he likes staying with her. You can also tell from the quotation above that he looks up to her mother and thinks that she has a large knowledge. He is embarrassed of his stay at the hospital. He can’t look her mother in her eyes afterwards: “… and for a quick second she caught his eye. He looked away”. David’s mother, Mary, has thick blonde hair and a large-boned face. She wants the best for David. She would do whatever he likes her to do, just to make him happy. She appreciates him a lot. The appreciation underlies that she had a hard time getting a child in her early days. Therefore she had given up the hope of getting a child. But then, after twenty years of marriage, David was born. She takes the blame of David’s depression...
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...happiness. There are various animals, including two tame panthers, beautiful flowers, and shady trees. Wallace meets a tall, fair girl who “came to meet me, smiling, and said ‘Well?’ to me, and lifted me and kissed me, and put me down and led me by the hand.” He meets other children and they play games together, although he cannot remember the games, a fact which later causes him much distress. A woman begins to read a book to the boy, and soon it becomes apparent that the story she is telling is that of his own life. When the book reaches the point in his life at which Wallace finds himself outside the green door, the enchanted world vanishes, and the boy finds himself once more on the dismal West Kensington street in London. Wallace tells his father about the garden — and is punished for telling what his father assumes is a lie. In time, and as a result of this punishment, Wallace succeeds...
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...Tim O’Brien’s “How to Tell a True War Story,” centers on the principle that a reader cannot always trust the narrator of a story to tell the truth. The reader can listen, but must never cease to analyze in order to decipher the truth in each story. In Tim O’Brien’s short story, his narrator is naturally accepted and assumed to be the author of the story. Through this narrator, a story of personal Vietnam War experiences unfolds. Because this appears to be true stories told by O’Brien, the reader is left to assume all the tales are true encounters when in fact, O’Brien mixes truth and fiction in order to make the story believable. It is important to remember that the soldier telling the war story can only relay the facts that he remembers from the event. He may be sincere in telling the events as he remembers, but not accurate in reporting the entirety of the historical picture.. The setting is the Vietnam War; a war filled with controversy, and soldiers and civilians struggling to make sense of it all. In the story, O’Brien creates a believable setting with believable characters. He describes a setting that one would expect to find in Vietnam: rugged terrain, foxholes, jungles and muddy rivers. He also uses the giant canopy of a tree (as one would expect in this area) to tell the details of the death of his friends, Lemon and Rat. Describing the smell of the moss, the white blossoms and the lack of sunlight allowed by the tree, O’Brien creates a soothing feeling...
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