Identify the Industry Composition

•Industries in case can be organized into five groups consisting of A. Financial industry

High receivables (loans) and payables (deposits, other loans), little inventory Commercial bank (2)

2 has the maximum receivables and payables (both note payable and bank account payable). It includes no recycleables, work in progress and completed goods, which can be characteristics for the bank.

N. Retail market

Lots of inventory, low low profit percentage

Retail grocery stores(1)

you has the lowest gross perimeter ratio, an increased inventories, no work in improvement. Therefore one particular has the attributes of Retail sector.

C. Excessive Technology

Excessive R& Deb

There are three companies containing high R& D bills. They are several, 8, 6. Computer software (8)

Software innovations need dedicate much more costs on research and development. They require much less raw materials and inventories. Therefore 8 must be Computer software. Pharmaceutic preparations (6)

Pharmaceutical preparations need intangible assets including brand identification and good will. 6th has a higher intangibles than 6. What's more, 6's protection ratio is nearly 10 times greater than 7. As a result, 6 is definitely the right one. The left the first is 7. So 7 is definitely Semiconductor company.

Semiconductor producer (7)

D. Service sector

Little products on hand, high current receivables

THAT service provider (5)

IT company provides services only, so they must do not need stocks. It also have high current receivables. In accordance to this, your five should be the THIS service provider. Cellphone service provider (9)

9 and 10 both have a low inventories. However , 12 has completed goods that ought to be 0 if 10 was Mobile phone service agency. Therefore 9 should be the right one. E. Capital Intensive industry

Commercial aircarrier (10)

Air travel might be the most capital intensive. 10 and 6 have relatively bigger shareholder value than the associated with all. I do believe 10 is a Commercial air travel because it includes a higher capital surplus than 6 the...