Can you help match the 9 company types listed to their corresponding financial data using the ratios?

There are 9 company types listed on the last image. Those company types need to be matched to their corresponding company # with the answer justified using the ratios in Exhibits 2-4. ie. Discount airline is company #1 because.......

IDENTIFY THE INDUSTRY-ANALYSIS OF FINANCIAL STATEMENT DATA Since companies in the same industry face similar opportunities and constraints, they tend to make similar invest- ment, dividend, and financing decisions. Thus, the financial characteristics of firms in the same industry tend to cluster together. For example, old economy businesses with large amounts of tangible assets may have higher leverage ratios because such assets provide good collateral for lenders. Service or trading firms may have large amounts of intangible assets such as knowledge assets or a large and loyal customer base, and, hence, have low leverage ratios because growth options can devalue quickly. On the other hand, companies in different industries tend to exhibit different financial characteristics, as measured by financial ratios, because of cross-sectional dif- ferences in operating and financing decisions. With some knowledge of the different operating, investing, and financing decisions across industries, financial ratios may be used to identify an industry (see Exhibit 1 for the definition of ratios used). Common-sized balance sheets (all items scaled by total assets), common-sized income statements (all items scaled by net sales), and selected financial ratios for the nine companies are provided. Since unusual deviation from target values may occur in any given year, the values for the items were averaged over three years. The three- year average common-sized balance sheet, common-sized income statement, and financial ratios are reported in Exhibits 2, 3, and 4, respectively. The 9 companies are drawn from the following 9 different industries: Liquor producer and distributor Discount airline Commercial bank (items fitted into the same categories as the non-financial firms) Computer software company Large integrated oil and gas company Mobile phone service operator R&D-based pharmaceutical manufacturer Retail grocery company R&D-based semiconductor manufacturer Assignment Using the financial statement data provided in Exhibits 2, 3, and 4, match the companies with their industry. NOTE: #DIV/O! or #Value! indicates that the item was not separately disclosed.Exhibit 1. Definitions of Some Key Financial Ratios LIQUIDITY RATIOS Cash & Marketable Securities to Total Assets = (Cash + Market Securities) / Total Assets Acid Test Ratio = (Cash + Market Securities + Receivables) / Current Liabilities Current ratio = Current Assets / Current Liabilities ASSET MANAGEMENT Day's Receivable - 365 / (Sales / Receivables) Day's Inventory = 365 / (Cost of Sales / Inventory) Asset Turnover = Sales / Total Assets FINANCIAL LEVERAGE Debe to Total Assets - (Total Current Debe + Long-term Debt) / Total Assets Debt to Stockholders' Equity = (Total Current Debe + Long-term Debt) / Stockholders' Equity Coverage Ratio = (Operating Profit + Interest Expense) / Interest Expense PROFITABILITY Gross Margin Ratio Gross Profit / Sales Return on Sales = Net Income / Sales Return on Assets = Net Income / Total Assets Return on Equity = Net Income / Stockholders' Equity DUPONT ANALYSIS Return on Equity = Return on Sales * Asset Turnover * Leverage (Net Income / Sales) x (Sales / Assets) x (Assets / Stockholders' Equity)Exhibit 2. Common-Sized Income Statement (all items scaled by sales) Company 1 2 3 4 5 6 7 9 Sales 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Cost of Goods Sold 42.9% 30.3% 25.2% 15.6% 22.7% 77.3% 12.6% 73.6% 80.7% Gross Profit 57.1% 69.7% 74.8% 84.4% 77.3% 22.7% 87.4% 26.4% 19.3% Selling, General, & Administrative Exp. 27.1% 37.2% 33.1% 54.8% 38.0% 11.9% 38.1% 19.1% 3.8% Operating Income before Depreciation 30.1% 32.5% 41.7% 29.6% 39.3% 10.7% 49.3% 7.3% 15.5% Depreciation, Depletion & Amortization 14.3% 1.8% 13.5% 5.5% 4.3% 4.8% 3.1% 1.8% 3.9% Operating Profit 15.7% 30.8% 28.1% 24.1% 35.0% 5.9% 46.2% 5.5% 11.6% Interest Expense 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Non-Operating Income/Expense 1.0% 0.3% 1.1% 0.5% 1.0% 0.1% -13.4% 0.5% 4.9% Special Items -2.2% -0.1% -0.3% 0.1% -3.0% -0.8% -1.0% 0.0% 0.5% Pretax Income 11.7% 30.0% 28.2% 23.8% 32.4% 4.3% 31.8% 5.4% 16.8% Total Income Taxes 9.4% 7.3 5.116 6.896 1.70% 10.16 1.70% 6.96 Income Before Extraordinary Items & Non-controlling Interest 7.9% 20.5% 21.0% 18.8% 25.5% 2.6% 21.7% 3.79% 9.9% Net Income 7.7% 20.5% 21.0%% 18 8%% 25.5% 2.GO% 20.296 3.50% 9.5% Source: Standard & Poor's Capital IQ Net Advantage.Exhibit 3. Common-Sized Balance Sheet (all items scaled by total assets) ASSETS 2 3 5 Cash & Short-Term Investments 1.49% 8.7%% 21.4% 17.49% 51.9% 16.6% 10.49% 3.646 2.89% Net Receivables 1.89% 14.2% 1.79% 11.89% 12.2%% 1.9% 55.19% 10.6% Inventories 0.49% 21.6%% 5.3% 7.6% 1.4%% 2.4% 3.0% 21.596 1.5% Prepaid Expenses 0.49% 3.7%% 0.0% #VALUE! 0.0% WVALUE! 0.0% VALUE! 0.0% Other Current Assets 1.49% 3.0% 4.8% 2.3% 3.8%% 2.5% #VALUE 1.096 1.6% Total Current Assets 8.49% 51.21% 36.1% 39.1% 69.2%% 23.3% 68.5% 29.396 19.5% Gross Plant, Property & Equipment 98.2% 25.7%% 79 8% 13.79% 15.9% 104.8% #VALUE 85.096 122.3% Accumulated Depreciation 58 39% 13.5%% 46.35 -21.09% 36.5% #VALUE 27.146 54.6% Net Plant, Property & Equipment 40.09% 12.20b 33.5% 22. 7% 7.1% 68.3% 0.89% 57.7% 67.7% Inveuments at Equity 1.5% VALUE! 1.5% #VALUE! VALUE! 0.0% 0.7% VALUE! 8.4% Other Investments WVALUE! VALUE 7.89% 17.3% 8.09% 0.3% 22.2% 0.016 2.0% Intangibles 17.69% 34.79% 19.2% 13.89% 14.0%% 6.0% 3.3% 10.1% #VALUE! Deferred Charges 0.09% 0.0% 1.0% 020% 0.09% 1.0% #VALUE VALUE 0.0% Other Assets 2.69% 1.9% 1.9% 7.09% 1.65% 2.1% #VALUE 2.916 2.4% TOTAL ASSETS 100209% 100.0%% 100.0% 100.0% 100.0%% 100.0% 10 0.09% 100.046 100.09% LIABILITIES 0.09% 0.0%% 0.0% 0.09% 0.0%% 0.0% 0.0% 0.096 0.0% Accounts Payable 3.99% 3.5%% 3.79% 3.39% 3.7 5.3% 70.49% 18.7% 1 1.6% Notes Payable & Other ST Borrowings 0.09% 0. 1% 0.3% 0.09% 0.09% 3.89% 3.1%% 2.1% Current Portion of LT Debt 1.5% 0.0%% 0.0% 2.59% 2.89% 1.19% 2.1%% 0.5% Total Current Debt 1.59% 0.2%% 0.3% 2.5% 1.4% 2.8% 4.99% 5.1% 2.7% Income Taxes Payable 0.59% 0.8%% 0.0% 0.6% 0.59% 0.5% #VALUE 0.7% 3.0% Accrued Expenses 3.59% 8.20b 9.2% #VALUE! 3.09% 54% #VALUE 8.94 #VALUE! Other Current Liabilities 2.59% 0. 19% 2.4% 19209% 18.0%% 12.5% #VALUE 0.14 3.9% Total Other Current Liabilities 6.09% 11.6% 19.0% 20.9%% 18.0% WVALUE 1.9% Total Current Liabilities 11.9% 12.8%% 15.6% 25.49% 26.6%% 26.5% 75.39% 33.874 21.1% Long Term Debt M.0% 22.1% 13.3% 14.79% 9.95% 14.7% 8.49% 22.2% 2.4% Deferred Taxes & Investment Tax Credit 11.0% 4.0%% 1.2% #VALUE! 15.0% 0.49% 2.196 11.3% Other Liabilities 17.79 9.85% 1.2% 15.59% 8.09 5.09% 1.6% 14.5% TOTAL LIABILITIES 18.7 37.2% 55.69% 62.1% 18.99% 19.916 19.39% Redeemable Non-controlling Interest 0.09 D.ON 2.0% 0.16 0.0% EQUITY 0.09% 0.09% 0.09% 0109% 0.0%% 0.0% 0.09% 0.076 0.09% Preferred Stock - Redeemable 0.0% 0.0% 1.0% 0.09% 0.0%% 0.0% 0.09% 0.016 0.0% Preferred Stock - Nonredeemable 0.09% 0.0%% 0.0% 1209% 0.09% 0.0% 0.99% 0.096 0.0% Total Preferred Stock WVALUE! VALUE VALUE! #VALUE! VALUE! #VALUE! 1.9% VALUE #VALUE! Common Stock 2.49% 0.85% 0.0% 2.1% 0.0%% 1.3% 0.6% 0.2% 2.9% Capital Surplus 35.3% 1.8% 23.4% 14.49% 17.0%% 6.5% 4.19% 0.0% Retained Earnings 11.69% 69.9%% 39.3% 37.09% 7.0%% 30.7% 5.79% 35.56 103.9% Less: Treasury Stock -12.1% 21.2% #VALUE! 9.1% VALUE -4.8% 0.4% VALUE! 58.0% Common Equity 35.29% 51.356 62.8% 14.49% 54.10% 37.9% 10.19% 37.2% 18.8% Shareholders Equity-Parent 35.29% 51.3%% 62.8% 14.49% 54.1% 37.9% 11.0% 37.2% 48.8% Nonredeemable Non-controlling Interest 0.19% 0.0%% 0.0% 0209% 0.0 0.0% 0.19% 2.596 1.8% STOCKHOLDERS EQUITY TOTAL 35.49% 51.31% 62.8% 14.49% 54.1% 37.9% 11.1% 39.7% 50.7% TOTAL LIABILITIES & EQUITY 100.09% 100.0%% 100.0% 100 09% 100.0%% 100.0% 10 0.09% 100.046 100.0%Exhibit 4. Selected Financial Ratios (three-year average of values for 2011-2013) Company 1 2 3 4 5 G 7 9 LIQUIDITY RATIOS Cash & Market Sec to Total Assers 0.01 0.09 0.21 0.17 0.52 0.17 0.10 0.04 0.03 Acid Test Ratio 0.52 1.80 1.67 1.15 2.41 0.70 0.87 0.20 0.63 Current Ratio 0.71 4.02 2.32 1.54 2.61 0.88 0.91 0.87 0.92 ASSET MANAGEMENT Day's Receivable 37.35 67.77 26.01 63.34 80.88 7.57 3.208.07 5.10 31.30 Day's Inventory 7.52 341.92 117.78 264.40 37.57 12.50 1,342.81 46.27 16.66 Asset Turnover 0.47 0.77 0.65 0.68 0.55 0.90 0.06 2.31 1.23 FINANCIAL LEVERAGE Long-term Debt to Total Assets 0.26 0.22 0.14 0.17 0.11 0.17 0.13 0.27 0.05 Long-term Debt to Stockholders' Equity 0.04 0.00 0.01 D.DG 0.03 0.07 0.44 0.13 0.05 Coverage Ratio #DIV/O! #DIV/O! #DIV/O! #DIV/O! #DIV/O! #DIV/Q! #DIV/0! #DIV/Q! #DIV/O! PROFITABILITY Gross Margin Ratio 0.57 0.70 0.75 0.84 0.77 0.23 0.87 0.26 0.19 Return on Sales 0.08 0.21 0.21 0.19 0.26 0.03 0.20 0.04 0.09 Return on Assets 0.04 0.16 0.14 D.13 0.14 0.02 0.01 0.08 0.12 Return on Equity 0.11 0.31 0.22 0.29 0.26 0.06 0.11 0.20 0.23 DUPONT ANALYSIS Return on Equity = 0.11 0.31 0.22 0.29 0.26 0.06 0.11 0.20 0.23 Return on Sales 0.08 0.21 0.21 0.19 0.26 0.03 0.20 0.04 0.09 * Asset Turnover 0.47 0.77 0.65 0.68 0.55 0.90 0.06 2.31 1.23 * Leverage 2.84 1.98 1.59 2.27 1.85 2.64 9.05 2.52 1.98 Source: Standard & Poor's Capital IQ Net Advantage