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Deriving a Balance Sheet Analysis

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Following are the common-size balance sheets from companies: Pfizer, Inc., a global research -driven pharmaceutical company; JC Penney, national retailer; Time Warner, a global media and Entertainment Company; and Duke Energy, a leading energy company focused on electric power and gas distribution.

Based on your general business knowledge, the environments in which the above firms operate, and information derive from the balance sheet analysis, match the company with its respective balance sheet. Explain each the choices that you made. Common-Size Balance Sheet Comparisons

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In reviewing the information, the financials tell us that both Company A and Company B have heavy investments in their current assets. In addition, Company A's inventory is a signification portion of those assets. Both Company A and Company C have a high amount of property, plant & equipment (PP&E). Company C is much more leveraged that the other three companies. In regards to goodwill and intangibles, Companies B & D are reporting high, with Company B having higher retained earnings.

The goodwill happens ...

See Also This Related BrainMass Solution

Horizontal and Vertical Analyses of Balance Sheet Data

The comparative condensed balance sheets of Conard Corporation are presented below.

Comparative Condensed Balance Sheets
December 31

2012 // 2011
Current assets $ 73,610 // $ 79,730
Property, plant, and equipment (net) 99,050 // 89,870
Intangibles 27,450 // 39,620
Total assets $200,110 // $209,220

Liabilities and stockholders' equity
Current liabilities $ 41,830 // $ 48,180
Long-term liabilities 143,710 // 149,470
Stockholders' equity 14,570 // 11,570
Total liabilities and stockholders' equity $200,110 // $209,220

1. Prepare a horizontal analysis of the balance sheet data for Conard Corporation using 2011 as a base.
2. Prepare a vertical analysis of the balance sheet data for Conard Corporation in columnar form for 2012.

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