Effective financial statement analysis requires an understanding of the economic characteristics of the firm being analyzed. Many of these economic characteristics are captured in the relationship between various financial statement items. The exhibit presents condensed financial statement information for firms in 13 different industries. Balance sheet and income statements items are expressed as a percentage of total revenues (that is, all amounts are divided by total revenues for the year). The 13 companies (all corporations except the professional basketball franchise) shown represent the following industries: 1. Advertising agency 2. Aerospace manufacturer (significant government contracts) 3. Beer brewery 4. Computer manufacturer 5. Department store chain 6. Distiller of hard liquor 7. Electric utility 8. Finance company (also involved in leasing) 9. Grocery store chain 10. Life insurance company 11. Pharmaceutical company 12. Professional basketball franchise (a partnership) 13. Steel manufacture Use whatever clues that you can to match the companies in the exhibit with the industries listed above. Exhibit - Data for Ratio Detective Exercise Effective financial statement analysis requires an understanding of the economic characteristics of the firm being analyzed. Many of these economic characteristics are captured in the relationship between various financial statement items. The exhibit presents condensed financial statement information for firms in 13 different industries. Balance sheet and income statements items are expressed as a percentage of total revenues (that is, all amounts are divided by total revenues for the year). The 13 companies (all corporations except the professional basketball franchise) shown represent the following industries: 1. Advertising agency 2. Aerospace manufacturer (significant government contracts) 3. Beer brewery 4. Computer manufacturer 5. Department store chain 6. Distiller of hard liquor 7. Electric utility 8. Finance company (also involved in leasing) 9. Grocery store chain 10. Life insurance company 11. Pharmaceutical company 12. Professional basketball franchise (a partnership) 13. Steel manufacture Use whatever clues that you can to match the companies in the exhibit with the industries listed above. Exhibit - Data for Ratio Detective Exercise