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

Ratio Company A Company B Company C

Gross profit margin 18% 53% n/a

Net profit margin 2% 14% 8%

Research & Dev. to sales 0% 17% 0.1%

Advertising to sales 7% 4% 0.1%

Return on assets 11% 12% 7%

A/R turnover 95 times 5 times 11 times

Long term debt to equity 64% 45% 89%

Required:

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