EE204: Business Management for
Electrical Engineers and Computer Scientists

The Role of the Balance Sheet and Income Statement in Strategy


  1. Read: Introduction to Financial Ratios and Financial Statement Analysis
  2. Complete: Case of the Unidentified Industries


In this Sudoku like exercise, the balance sheets (in percentage form) and other selected financial data for 14 firms drawn from 14 different industries are presented.
  1. Match the 14 firms operating in the 14 industries with the 14 sets of financial data presented in the case. The objective is to understand how the strategy of a business is reflected in its financial statements.
  2. Why does each of the industries have the patterns of asset use revealed in Exhibit 1? The sources of financing? The profitability? The inventory turnover? The accounts receivable collection period?
  3. What questions would you have if a company's financials were "outliers". not fitting the industry norm

Study Group

For this exercise, form groups of 3-5 students for the analysis, discussion, and identification of companies. Students may choose to form groups on their own, or groups will be formed by the instructor as needed. Multiple inputs will dramatically improve your accuracy.