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Lets Go

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Submitted By tintincentury
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For our case, we were given 14 firms from 14 different industries and 14 different balance sheets. The challenge is we have to match those 14 cases with 14 balance sheets logically.
To start the case, we look at the type of industry we are working on. Overall, the 14 firms consist of 2 main industries, the goods and services industries. There are 5 companies that work in the service industry and 9 companies that
Service industry E, G, L, M, N
Advertising company corresponds to E because as a service firm, this agency does not contain inventory (0%). The number of inventory turnover is not applicable in this account also because originally they do not have products to sell and the programs or plans they provide to their customers cannot be contained in inventory. They generally provide credit term to their clients which leads to a high amount of account receivable (37%). Since account receivable is high, the company needs to finance their account payable through common stock (25%). In addition, their receivables collection period is high as well (201) because normally a project would take about more than three months to finish.
Health maintenance matches with balance sheet G because they have low plant and equipment (only 7%. Building is all they need to work. Similarly, their inventory is also low (0%) since they are Service Company. This explains why the inventory turnover not applicable for this type of business. In addition, they have a high account receivable (51%) because of the way they run business. Typically, they give clients for a while to collect the money. This leads to a high level of account payable (46%) and their strategy to balance this is to finance their business through common stock (37%).
Airline Company can fit into balance sheet L’s description. First, people who pay for airline tickets usually use their debits card or credits card to pay

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