Question

Financial profiles, expressing the dollar value of financial statement accounts as a percentage of total assets (for balance sheet accounts) and sales (for income statement accounts), are listed from recent financial statements for four well-known companies:

●		Bed Bath & Beyond—housewares retailer
●		Kelly Services—provider of part-time employees
●		Bank of America—commercial bank
●		Hewlett-Packard—technology and consulting company

*please note, this is a literal copy and paste*

		1		2		3		4
Balance Sheet
Cash		34		16		9		8
Accounts receivable		50		0		15		56
Inventories		0		39		7		0
Long-term assets		1		32		19		10
Other assets		15		13		50		26
Current liabilities		76		22		47		41
Long-term liabilities		15		7		19		14
Shareholders’ equity		9		71		34		45
Income Statement
Sales of goods		0		100		77		0
Sales of services		100		0		23		100
Cost of goods sold		0		60		59		0
Operating expenses		96		34		31		101
Net income		4		6		10		(1	)

Link each profile with a company.

1.
2.
3.
4.

Answer 1

From the financials, we can attach the 2nd and 3rd financials to the given companies easily

In the 3rd financials, Income statement there is both Sale of goods and Services. From the given list of companies, Hewlett Packard alone will have both sale of goods and services

In the 2nd financials, Income statement contains only sale of goods. Bad Bath & Beyond a retailer will have only sale of goods. We can also confirm this as the company is retailer so it has no accounts receivable (where most sales are cash sales)

This leaves us with 1st and 4th financials.

A) 4th financial statement has high long term assets and high equity when compared to 1st financial statement.

B) 1st financial statement has high cash balance when compared to 4th financial statement

Bank of America and Kelly Services are the remaining two companies. In general banks have high long term assets and also high cash reserves. But 1st financial have high cash and 4th financial have high long term assets.

So, here we assume that the bank lent all the cash to different people and the cash balance has decreased. Long term assets must be high because it has different branches, infrastructure etc. So it is probable that the Bank of America's financial statement is 4th financial.

Summary :

1. Kelly Services

2. Bed, Bath & Beyond

3. Hewlett Packard

4. Bank of America