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Deriving a Balance Sheet Analysis

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 ...