Selected ratios for three different companies that operate in three different industries (merchandising, pharmaceuticals, utilities) are reported in the table below:

Ratio	Co. A	Co. B	Co. C
Gross profit margin ratio	18%	53%	n.a.
Net profit margin ratio	2%	14%	8%
Research and development to sales	0%	17%	0.1%
Advertising to sales.	7%	4%	0.1%
Interest expense to sales	1%	1%	15%
Return on assets	11%	12%	7%
Accounts receivable turnover	95 times	5 times	11 times
Inventory turnover	9 times	3 times	n.a.
Long-term debt to equity	64%	45%	89%

n.a. =not applicable

 

Required:

Identify the industry that each of the companies, A, B, and C, operate in. Give at least two reasons supporting each of your selections.