Below Are Selected Ratios for Three Companies Which Operate in Three

question 7

Essay

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.

---

Definitions:

Bona Fide Occupational Qualification

A work requirement that is essential for the performance of a job, even if it appears to be discriminatory, because it relates directly to the core operations of the business.

Discriminate

To treat someone differently or less favorably on the basis of certain characteristics, such as race, gender, or disability, which is often considered unlawful.

Federal EEOC

The U.S. Equal Employment Opportunity Commission, a federal agency that enforces civil rights laws against workplace discrimination.

State EEOC

State level branches of the Equal Employment Opportunity Commission that handle discrimination complaints and issues.