Below Are Selected Ratios for Three Companies Which Operate in Three

Below are selected ratios for three companies which operate in three different industries: Discount Retail Store, Drug, and Utility.Identify which industry each of the companies A, B, and C operate in. Give two reasons for each of your selections. $\begin{array} { l l l l } \text { Industry } & \text { A } & \text { B } & \text { C } \\\text { COGS/Sales } & 80 \% & 58 \% & \text { n/a } \\\text { R\&D/Sales } & 0 \% & 7 \% & 0.1 \% \\\text { Advertising/Sales } & \text { not defined } & 3 \% & 0.1 \% \\\text { Interest/Sales } & 0.9 \% & 1 \% & 6 \% \\\text { Net Income/Sales } & 2.5 \% & 10 \% & 10 \% \\\text { Return on Assets } & 8.5 \% & 10.6 \% & 7.2 \% \\\text { Inventory Turnover } & 5.5 & 4 & \mathbf { n } / \mathbf { a } \\\text { Accounts Receivable Turnover } & 100 & 6 & 9 \\\text { Long-term Debt/Equity } & 60 \% & 50 \% & 40 \% \\& & &\end{array}$


$\mathrm{n} / \mathrm{a}=\text { not applicable }$


Identify which industry each of the companies A, B, and C operate in. Give two reasons for each of your selections.