L. The data given in column L matches most with that of Electric and gas utility. A notable feature here would have to be their low inventory which is quite low (2%) meaning they do not need many goods for their line of business. This is mainly so because their revenue comes from electricity and natural gas sales which are a form of natural emissions in one way or another. Plant and equipment tends to be high in this industry as there is heavy machinery in power plants used to convert natural gas into electricity/ transform energy into usable power. It happens to be 60% of total assets. Another figure that leads to our decision is long-term debt of 32%, which is quite high compared to other industries, which makes sense given their high plant and equipment percentage. This tells us most of their financing comes from borrowings, making this a highly leveraged industry. Also, their inventory turnover ratio of 2.3 correlates with their low inventory percentage of 3%, which essentially tells us, they are not incurring many costs of goods sold. Moreover, the profit margin here is at .09, which is higher than most of the other industries, and it is safe to say that is due to the fact there is not much competition within this industry.

A. Column A gives us data matching that of an Online Retailer. To begin, their inventory is at 19% of assets, which is higher than majority of the other industries mentioned. This can be easily explained by the fact that they are selling products to generate revenue, whether to customers or businesses. Managing inventory can sometimes be difficult in the online retailer industry because much in depth and tracking of sales is necessary as you are more than likely carrying a wide variety of products. Plant and equipment is also high here probably due largely to the fact that much storage space is needed for products, for example warehouses. Also, their long-term debt isn’t as high as other industries, which can perhaps be explained by the fact that some retailers are startups and would much rather have equity investors rather than debt. Here in column A, it shows 20 days collection period; the form of payment usually here is through a credit/ debit card and this can simply mean that not only do they cater to individuals, but businesses as well which averages out soon and longer collection periods. Finally, the profit margin here is -.001, a slight loss that represents that of a highly competitive industry; Returned and/or damaged goods can also explain this loss.

D. The most notable feature here was the high profit margin of .247, which is common for a Pharmaceutical Manufacturer. This is so due to the high markups they can put on their products and although there is competition within this industry, a company has the ability to get rid of it simply because of the difficulty of creating drugs and getting them approved; Once approved through legal patents and things as such is how they can come out on top with high profits. The next reasoning is due to inventory turnover of 1.6 times which is relatively low and as previously mentioned, can be explained due to the fact that it takes a very long time to come up with a new product; thus, inventory is kept awhile. Lastly, their collection period is quite high which indicates that most of their business is done with other business entities and not individual customers.