FINANCE DETECTIVE

CLASS EXERCISE

(taken from : Financial Statement Analysis, A

Strategic Perspective, Clyde P.
Stickney/Amos Tuck School of Business
Administration, Darthmouth College)

MM 5009 FINANCIAL MANAGEMENT

MBA PROGRAM
SCHOOL OF BUSINESS AND MANAGEMENT
INSTITUT TEKNOLOGI BANDUNG

Finance Detective Class Exercise.

Effective financial statement analysis requires an understanding of the
economic characteristics of the firm being analyzed. Many of these economic
characteristics are captured in the relationship between various financial
statement items. Exhibit 1.2 presents condensed financial statement
information for firms in 13 different industries. Balance sheet and income
statements items are expressed as a percentage of total revenues (that is, all
amounts are divided by total revenues for the year). The 13 companies ( all
corporations except the professional basketball franchise ). The 13 companies
(all corporations except the professional basketball franchise) shown
represent the following industries :
1. Advertising agency
2. Aerospace manufacturer (significant government contracts)
3. Beer brewery
4. Computermanufacturer
5. Department store chain
6. Distiller of hard liquor
7. Electric utility
8. Finance company (also involved in leasing)
9. Grocery store chain
10. Life insurance company
11. Pharmaceutical company
12. Professional basketball franchise (a partnership)
13. Steel manufacture
Use whatever clues that you can to match the companies in Exhibit 1.2 with
the industries listed above.