Drivers Of Industry Financial Structure

In order to facilitate our analysis we divided the companies into services, sell and R&D. The first step was to divide the equipoises between the ones that had a value for R&D/Sales and the ones that didnt. So we live with counterpoise sheets A, F, G and J and the companies that require R&D are the Developer of Prepackaged Software, the On-line Retailer, the Pharmaceutical Company and the manufacturing business of Electronic Communications Equipment. Now we have six rest balance sheets and six companies. We divided these remaining companies into services and retail. Companies in the service business usually have low-spirited inventories so we have balance sheets C, D and I and the Major passenger Airline, the International Hotel Chain and the Temporary Staffing Agency. The remaining companies are the warehouse Club for Food and General Merchandise, the Supermarket Grocery Retailer and the manufacturer and Marketer of Consumer Products and these industries are characterized by high gear dues, high inventories and high inventory turnover so, we can conclude that the corresponding balance sheets are B, E and H.
We will now perform much in-depth analysis in order to match each keep company to each balance sheet.





In order to specify what balance sheet corresponds to the On-line Retailer we must first peg down some of the characteristics of On-line Retailers. On-line Retailers require some R&D (9,7%) exactly because they are on-line and need to be constantly aware of changes in their environment, they also have low inventories (8,9%) and accounts receivable because they work on-line they usually dont have a big physical space in which to store inventories so these cant be real high notwithstanding also because they manage their inventories in a very aggressive way and they have low accounts receivable because they sell by credit card, this should also mean that in that location are some unearned revenues. All this leads us to weigh that balance sheet A corresponds to the On-line Retailer but lets look at some...If you want to squeeze a full essay, order it on our website: Orderessay



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